Interested to see this go down in parallel with Elon's "everyone must be in office decree". I have multiple friends that work at Tesla and at least one of them has it in their work contract to allow remote work for at least a year (they started 2 weeks ago). Not sure how his decree will work out (though I have only heard about the employment contract, not actually seen it).
Tesla to Cut 10% of Jobs
111–120 of 613 posts
Re: Tesla to Cut 10% of Jobs
#112Earlier quoted context omitted.
> bad. I think it'll be worse. Different. 2007/08 was a financial crisis, and global banking infrastructure almost imploded. Here we're talking about deglobalization, supply chain issues and, well, a war . What's interesting is that the main problems may not be US focussed, it may happen around the world (although no one will be safe). For example, hard to imagine the Canadian real estate sector isn't going to melt d…
Far from economist, but I kinda agree. Finance is like 6x larger than real economy hence it really rules the world. That said, wonder what's going to happen with cost of living and property market going thru the roof everywhere. Riots? Ain't got time for that when you need to feed yourself.
> Finance is like 6x larger than real economy
How are you measuring this? By conventional metrics, it's less than 10% [1].
Re: Tesla to Cut 10% of Jobs
#113Earlier quoted context omitted.
And while I know everyone is into breaking regulations, both fire codes (for density and exit corridors) and OSHA (for number of employees per toilet) limit the number of desks in an office.
Enter: Open plan offices! I love how now they are justifiably out of fashion when just a few years ago only staid companies had cubicles or offices!
A wild COVID variant has appeared!
Re: Tesla to Cut 10% of Jobs
#114[deleted]
Re: Tesla to Cut 10% of Jobs
#115Earlier quoted context omitted.
Is remote work hammering the economy? What effect does it actually have on productivity?
It's keeping a lot of people at home who otherwise would be in downtowns or suburban office districts buying lunch, having clothes drycleaned, stopping in stores, buying gas, etc.
Dry cleaning being the exception, I believe I spend more in my local neighborhood than ever before. If anything I’m giving more to the local stores rather than some far downtown area or sprawling office complex area.
Re: Tesla to Cut 10% of Jobs
#116Everyone has a super bad feeling about the economy. I think most large companies are going to be announcing back to office then followed by layoffs.
I was much more nervous about the long running policy of cheap capital to be honest. I’m glad for a correction before it goes too long.
Precisely this. We've been looking at too many startups raising money constantly and still have not been making any money.
We'll now see who will survive this correction, no matter how long it takes.
Re: Tesla to Cut 10% of Jobs
#117Earlier quoted context omitted.
Remember when Marissa Mayer eliminated WFH at Yahoo? Seemed to work out well for them.
Yahoo is an internet company. Tesla makes cars. Even for IT workers, I guess that sometimes you need to test on the actual hardware, and the factory is where most things happen. I am not saying that working from home is impossible, or that banning it is a good thing, but you can't really compare Yahoo and Tesla.
Those producing cars in the factory have never worked from home. The discussion is only about R&D, legal, finance whatever. And most of those don't differ significantly between Yahoo or Tesla.
Re: Tesla to Cut 10% of Jobs
#118Earlier quoted context omitted.
I agree I don't think it'll be 2007-2008 bad. I think it'll be worse. Covid, Ukraine, Remote Work, etc are all hammering the economy.
> bad. I think it'll be worse. Different. 2007/08 was a financial crisis, and global banking infrastructure almost imploded. Here we're talking about deglobalization, supply chain issues and, well, a war . What's interesting is that the main problems may not be US focussed, it may happen around the world (although no one will be safe). For example, hard to imagine the Canadian real estate sector isn't going to melt d…
There was a somewhat accepted view after QE that the next crash is going to be worse because of all the money that is being pumped into the system, and I think that logically makes sense. Although I agree we don't have shitty financial instruments this time, but it's still a lot of leverage in the system right? It must have accumulated somewhere? Or did something happen such that it's no longer the case and a danger? Did the economy actually grow into the leverage such that it's no longer a problem?
Re: Tesla to Cut 10% of Jobs
#119Right. Raise your hand if you were surprised to see this happen. So yesterday when it was Coinbase [0] announcing cuts the reaction was, 'ha ha crypto bad', 'worst of luck to them' and now when it also affects companies like Tesla, now the reaction is 'Shocking', 'everyone is doing it now', 'I wouldn't read much into it. A 10% cut is completely normal and healthy for a company the size of Tesla.' This to me sounds li…
Quick recession, then back to the market always going up. And for longer time spans, it has always gone up.
Re: Tesla to Cut 10% of Jobs
#120Earlier quoted context omitted.
Musk is no longer funding a portion of the deal with a margin loan. https://fortune.com/2022/05/25/elon-musk-equity-component-tw...
It's semantics. He doesn't have the cash, so one way or another he's leveraging up.
> He doesn't have the cash, so one way or another he's leveraging up
He's illiquid, not insolvent. Selling equity in Twitter or selling his equity in Tesla would be two ways to gain liquidity without leverage.