Tesla cuts over 10% of global workforce amid sales challenges and cost pressures
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
‘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
If you’re a non-unionized employee, check out our Tesla Layoffs guide.
You can also use our free Pocket Employment Lawyer tool for real-time insights.
📺 WATCH: Everything You Need to Know About Mass Terminations
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📞 Contact Samfiru Tumarkin LLP: 1-855-821-5900 or request a consultation online.
Our experienced employment lawyers in Ontario, Alberta, and British Columbia (BC) have helped tens of thousands of non-unionized individuals resolve their workplace issues, including wrongful dismissals.
If you’ve lost your job at Tesla for any reason, don’t panic. We can review your situation, assess your legal options, and help you secure the compensation you’re legally entitled to.
Contact your union immediately. By law, employment lawyers can’t represent unionized employees.
About the Author
Lior Samfiru
Lior Samfiru is a Founding Partner at Samfiru Tumarkin LLP and the Practice Leader of the firm’s Labour & Employment Law Group. Known for his advocacy and success representing both employees and employers, Lior exclusively serves clients in Ontario, where his extensive experience has made him one of Canada’s most sought-after employment lawyers.
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