Michael Burry Tweet on WSJ $TLSA Labor Piece


I see a bifurcated labor market developing as unskilled and semi-skilled remain in short supply, but white collar workers, having proven their redundancy during COVID, will find gross excess in the labor market, pressuring wages at the end.

The article Burry was responding to was this piece from yesterday (Tuesday - 28 JUN 22) about Tesla layoffs - and hires.

WSJ headline: Tesla Lays Off Some Staff in Closing San Mateo, Calif., Office

Sub-headline: Electric-vehicle maker is pursuing cost cuts amid inflationary pressures, supply-chain disruptions


Earlier this month, Chief Executive Elon Musk notified Tesla’s rank-and-file that the company planned to cut 10% of its salaried workforce amid concerns about the global economy.

The staff being let go likely could be replaced elsewhere for lower pay, one of the people said.

At the time Mr. Musk disclosed layoff plans, he said the cuts wouldn’t apply to workers building cars and battery packs or installing solar panels, noting that the hourly workforce would increase. He said that the auto maker’s workforce would increase over the coming year though salaried staff levels “should be fairly flat.”