Tesla scales back workforce again: Software, services, and engineering teams impacted

What’s happening at Tesla?

Tesla continues to scale back its staffing levels just weeks after eliminating more than 10 per cent of its workforce.

The latest reduction reportedly affects various segments of the electric vehicle maker, including software, services, and engineering.

While some employees shared on social media that they were let go, Samfiru Tumarkin LLP is working to determine the exact number of jobs cut.

According to Bloomberg, CEO Elon Musk has expressed a desire to trim the company’s headcount by at least 20 per cent — impacting thousands of positions.

SEE ALSO
• Tesla caps off April 2024 with fresh round of layoffs
• Tesla cutting 10% of salaried employees, hiring hourly workers
• Tesla sued by former staff over mass layoff, denied pay

Major layoffs continue

The latest round of job cuts at Tesla comes amid a flurry of layoffs in 2024.

Big names, including Kenvue, Hudson’s Bay, Google, Whirlpool, SAP Canada, IBM Canada, Netflix, EXL Service, Best Buy, Relic Entertainment, Intel, and Amazon, have also pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Rogers Layoffs: Reports of job cuts in April restructuring
• Kinaxis Layoffs: Alleged restructuring impacts 6% of workforce
• Where are layoffs happening in Canada?

How does this impact Canadian employees?

It remains unclear if Canadian employees are affected by the latest round of layoffs at Tesla. However, the company’s LinkedIn page no longer claims that it has more than 1,400 workers in the country.

If you’ve been laid off or are facing termination, here’s what you should know:

• You Are Likely Owed Severance: Employees at Tesla are entitled to full severance pay under Canadian employment law.
• What Severance Includes: Severance packages can cover salary, bonuses, commissions, benefits, and more.
• Rights Don’t Change: Even in times of corporate restructuring, your rights as an employee remain protected.

For a detailed overview of Tesla’s layoff history and severance entitlements, visit our Tesla Layoffs: Severance Pay for Employees guide.

Key severance facts for Tesla employees

If you’ve lost your job due to the closure, here’s what you need to know about severance in Canada:

• Severance Pay: Can be up to 24 months’ pay, depending on your role, age, length of service, and ability to find similar work.
• Deadlines: You have up to two years from your termination date to pursue a claim for severance.
• Misclassified Employees: Contractors may also be eligible for severance if misclassified as independent contractors.

Use our Severance Pay Calculator to estimate what you’re owed.

Steps to take if you’ve been laid off

1. Don’t Sign Anything Yet: Before accepting any severance offer, have it reviewed by an employment lawyer to ensure it’s fair.
2. Understand Your Rights: Learn about severance pay and employment standards through our Tesla Layoffs Guide.
3. Contact Us for Help: Book a consultation with our team for a detailed review of your severance package and employment contract.

Talk to an employment lawyer

If you’ve been affected by layoffs at Tesla, it’s critical to understand your rights and secure the compensation you’re owed. Contact us today for expert legal advice and a free consultation.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals. In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

Call 1-855-821-5900 or complete a quick form to get started.