NEW YORK, June 30 — Executives at electric car marker Tesla, drug maker Novartis and retailer Bed Bath and Beyond are cutting spending or jobs while others are shelving projects or deals as inflation rages and confidence in the world economy wanes.
“The overarching concern that corporations have right now is how much will the economy slow down, and can we avoid a recession,” said Art Hogan, chief market strategist at National Securities in New York. Tesla, whose Chief Executive Officer Elon Musk previously said he had “super bad” feeling about the economy, has shuttered a California office and laid off about 200 workers. Musk has said the company needs to cut staff by about 10 per cent.
“For the majority of companies, they have to swallow a lot of these price rises themselves, and that means cutting back elsewhere,” said Stuart Cole, head macro economist at Equiti Capital.