Tesla Layoffs: More than 10% of staff being cut amid sales slump

What’s happening at Tesla?

Tesla is eliminating more than 10 per cent of its global workforce as it navigates a slowdown in sales and an ongoing price war for electric vehicles (EVs).

“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” CEO Elon Musk said in a memo to staff that was seen by Reuters.

The EV maker didn’t disclose the exact number of jobs affected by the reduction.

As of December 2023, Tesla reportedly employed more than 140,400 people globally.

SEE ALSO
• Tesla cutting 10% of salaried employees, hiring hourly workers
• Tesla sued by former staff over mass layoff, denied pay
• Rivian Layoffs: 10% of staff cut following $2.7B loss

Impact on Canadian staff

It remains unclear if any Canadian employees at Tesla have been let go.

According to the company’s LinkedIn page, it has more than 1,600 workers in the country.

‘Incorrectly low’ severance

Just days after the layoffs were announced, Musk apologized for the inadequate severance packages that were provided to affected staff.

Some Tesla workers told Business Insider that they were only offered two months’ pay.

ADDITIONAL RESOURCES
• Should I negotiate my own severance package in Ontario?
• Negotiating severance in Alberta: What employees need to know
• What British Columbians need to know about negotiating severance

Termination agreements for Tesla employees

In Canada, non-unionized employees at Tesla are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

Major layoffs continue

The job cuts at Tesla come amid a flurry of layoffs in 2024.

Big names, including Netflix, McKinsey & Co, EXL Service, Best Buy, Relic Entertainment, Ubisoft, Intel, Amazon, Telus, Canada Goose, Dell, Unilever, IBM, and TC Energy, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Shell to lay off 20% of deals division, part of restructuring
• Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

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:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.