- Elon Musk apologized Wednesday to laid-off Tesla staff for incorrect severance packages.
- The uncommon apology got here after the EV maker stated a minimum of 10% of its workforce was being laid off.
- Some staff beforehand informed Enterprise Insider they have been supplied two months’ pay as severance.
Elon Musk apologized in an electronic mail to some laid-off Tesla staff after their severance packages have been discovered to be “incorrectly low,” in keeping with a screenshot of the e-mail considered by Enterprise Insider.
“As we reorganize Tesla it has come to my consideration that some severance packages are incorrectly low,” Musk stated within the temporary electronic mail despatched Wednesday. “My apologies for this error. It’s being corrected instantly.”
The e-mail was first reported by CNBC.
Some staff have been offered two months of severance, 5 laid-off staff beforehand informed BI. Different staff informed BI that as of Wednesday evening, they’d but to obtain any details about severance packages.
Sixty days’ pay is the minimal that corporations with greater than 100 staff should give laid-off staff if there is not any 60-day discover interval earlier than mass job cuts, in keeping with the Worker Adjustment and Retraining Notification Act.
The Tesla CEO despatched an all-hands email Sunday evening saying the automaker was slicing greater than 10% of its workforce. Some staff learned they’d been affected only after turning up for work on Monday. Some have been informed by safety that if their ID badges did not work, they now not had jobs.
The mass layoffs come as Tesla faces a sharp slowdown in sales and rising competition from home producers in China, its most vital market exterior the US.
Tesla misplaced some senior executives amid the cuts. Drew Baglino, who’d been with the corporate for 18 years and was most lately its head of powertrain and electrical engineering, stated Monday he’d made the “tough resolution” to depart.
Rohan Patel, the vice chairman of public coverage and enterprise improvement, additionally introduced his exit on Monday.
Musk can also be grappling with lawsuits filed by 4 former executives of Twitter, now X. They’re suing him for $128 million in unpaid severance. The plaintiffs, who have been fired after Musk’s Twitter takeover in 2022, are former CEO Parag Agrawal; Ned Segal, the corporate’s former chief monetary officer; Vijaya Gadde, its former authorized chief; and Sean Edgett, its former normal counsel.
Tesla did not instantly reply to a request for remark made exterior regular working hours.
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Elon Musk Apologizes for ‘Incorrectly Low’ Tesla Severance Packages www.businessinsider.com 2024-04-19 08:29:37
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