Tesla Layoffs in May: Software, services, and engineering teams affected

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

Impact on Canadian staff

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.

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 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?

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.