Sunday 19 May 2024
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(April 18): Elon Musk said some of the severance packages sent to former Tesla Inc employees as part of its biggest-ever workforce reduction were too low.

“As we reorganise Tesla it has come to my attention that some severance packages are incorrectly low,” Musk said in a short email sent to employees on Wednesday and seen by Bloomberg News. “My apologies for this mistake. It is being corrected immediately.”

It’s not clear how many former employees are affected. The email was first reported by CNBC.

The email is a rare show of contrition from Musk, who’s contending with lawsuits brought by former Twitter employees and executives over severance. Earlier this week, the billionaire announced Tesla would slash global headcount by more than 10% as the carmaker struggles with slowing demand for electric vehicles.

Ex-Tesla employees have taken to social media to share stories of suddenly being unable to enter buildings when they arrived for work.

“Tried to badge in, and the security guard took my badge and told me I was laid off,” Nico Murillo, a former production supervisor, wrote on LinkedIn. “Sat in my car in disbelief.”

Amid the mass job cuts, which could reach closer to 20% in some divisions, senior vice president Drew Baglino resigned from the company.

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