Tesla to Cut More Than 10% of Its Workforce Amid Reassessment of Severance Packages

On Monday, Tesla announced that it will be laying off more than 10 percent of its employees worldwide. This news came after CEO Elon Musk acknowledged that some of the severance packages given to dismissed employees were mistakenly too low and apologized for the error. The company had over 140,000 employees at the end of last year, and some affected employees reportedly found out they were fired when their access card no longer worked.

It is unclear how many employees were affected by the low severance packages. However, this rare show of remorse from Musk comes after former employees sued him over severance pay discrepancies. In March, four former Twitter employees sued Musk for over $128 million in compensation after he acquired the company and renamed it X.

As Musk works to address the issue with severance pay, the company continues to navigate through restructuring and layoffs. It remains to be seen how Tesla will handle the aftermath of the layoffs and address the concerns raised by affected employees. The company has yet to release any details about the specific terms of the severance packages or how many employees will be let go.