Tesla cutting 10% of salaried employees, hiring hourly workers

Electric car maker Tesla is slashing 10% of its salaried workers, Elon Musk told employees on Friday.

In a note to staff Musk wrote that “Tesla will be reducing salaried headcount by 10% as we have become overstaffed in many areas.”

A message sent to company executives a day before stated that Musk had a “super bad feeling” about the economy. He told the clean tech giant to “pause all hiring worldwide,” two days after he demanded staff to return to the workplace from remote work or resign.

Musk clarifies firing and hiring

In another email to employees on Friday, the multibillionaire clarified that while Tesla will be laying off salaried workers, “hourly headcount will increase.” Hourly employees mainly consists of service, sales, and factory workers. It also includes people who install solar and home battery packs.

READ MORE
• Severance pay for hourly workers in Ontario
• Laid off in a bad economy? You might be owed more
• Severance packages for salespeople

“Note, this does not apply to anyone actually building cars, battery packs or installing solar,” Musk wrote in the email seen by several media outlets.

How does this impact employees?

The massive cuts to Tesla’s salaried workforce has left many employees uncertain about their future. 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.

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