Not unexpected. It's a move to change the culture, which Musk presumably sees as lazy and entitled. And he wants to get more from his employees for the same salary.
As an outsider, it's impossible to know if he's right, or if he's just a frustrated rich guy with no contructive ideas flogging a dead horse.
He certainly comes across as the latter and I reckon he's done enormous damage to his reputation already. Does anyone see him as the modern day Thomas Edison now? Or just a geeky guy with no social skills, who is unwilling to follow rules, and has come acropper, like the guy at FTX?
But as an employee, if you wish to get a new job, the smart play is to sign first, leave later. A new employer will be impressed by your willingness to embrace the workload.
That is, unless you already have an offer to work in a more stable company. In which case, get out now!
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