Tesla’s Layoff Announcement Brings Remorse from CEO and Attention to 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. The lawsuit brought attention to severance pay discrepancies, which led to a rare show of remorse from Musk. On Monday, Tesla announced that it will be laying off more than 10 percent of its employees worldwide. CEO Elon Musk acknowledged that some of the severance packages given to dismissed employees were mistakenly too low and apologized for the error.

It is unclear how many employees were affected by the low severance packages. Some affected employees reportedly found out they were fired when their access card no longer worked. Despite this, Tesla remains committed to addressing the concerns raised by affected employees and ensuring fairness in its severance pay practices.

The company had more than 140,000 employees at the end of last year, making this announcement a significant blow to its workforce. However, as Musk works to address the issue with severance pay, Tesla continues to navigate through restructuring and layoffs.

The outcome of these layoffs remains uncertain as it is yet to be seen how Tesla will handle the aftermath and address the concerns raised by affected employees.