Tesla layoffs: Elon Musk apologises for low severance packages for fired employees

Tesla layoffs: Elon Musk apologises for low severance packages for fired employees

Tesla CEO Elon Musk has officially apologised to his employees for the ‘incorrectly low’ severance package. The American EV maker had recently announced to fire 10 per cent of its total global workforce which amounts to around 14,000 employees, according to the data at the end of 2023. As per the email sent by Musk to Tesla employees, the company has sent out some severance packages that are too low, reported CNBC.

The email read, “As we reorganize Tesla it has come to my attention that some severance packages are incorrectly low. My apologies for this mistake. It is being corrected immediately.”

As per a report by Business Insider, five employees who were laid off earlier this week received two months of severance. As per the Worker Adjustment and Retraining Notification Act in US, companies with more than 100 employees are bound to give laid-off employees a minimum of 60-day pay as severance. They are also bound to give a 60-day notice before mass job cuts. Employees were told by security that if their ID badges are not working, they no longer have jobs.

Tesla claims the layoffs announced earlier this week will “prepare the company” for the “next phase of growth”.

Reuters had earlier reported that Tesla will shift its strategy, and will scrap an earlier plan to produce a more affordable EV in favour of focusing on robotaxi development. Notably, Musk rubbished the report but did not confirm any timeline for the launch.

Amidst all this, Tesla is expected to enter the Indian market soon. Tech Billionaire Elon Musk is set to meet PM Narendra Modi on April 22 in New Delhi. The company is seeking to set up its manufacturing unit in the country. However, it didn’t work out until now due to high import duty on luxury cars. The government has announced some major tweaks to its EV policy to encourage foreign companies to set up their factories in India.

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