Elon Musk apologizes to Tesla employees: Sent ‘incorrectly low’ severance - Hindustan Times
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Elon Musk apologizes to Tesla employees: Sent ‘incorrectly low’ severance

Apr 18, 2024 06:21 PM IST

There were 140,000 employees in the company by the end of 2023 which led to duplication of roles and responsibilities within the organization, Elon Musk said.

Elon Musk, the CEO of Tesla, informed employees via internal email on Wednesday that the company sent out severance packages that were too low to a number of laid-off workers this week.

Elon Musk arrives at the Tenth Breakthrough Prize Ceremony at the Academy Museum of Motion Pictures in Los Angeles, California.(AFP)
Elon Musk arrives at the Tenth Breakthrough Prize Ceremony at the Academy Museum of Motion Pictures in Los Angeles, California.(AFP)

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“As we reorganize Tesla it has come to my attention that some severance packages are incorrectly low. My apologies for this mistake. It is being corrected immediately,” Musk wrote in an internal mail that was sent to the organization.

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After the company’s decline in sales last year, Tesla laid off around 10% of its employees globally to cut costs. There were 140,000 employees in the company by the end of 2023, which led to duplication of roles and responsibilities within the organization as per the CEO. The company requires “revamping,” “preparation for the next phase,” and “organizational strategizing for the future” as per Musk.

Read more: Elon Musk on layoffs: ‘Tesla needs a complete organizational overhaul’

Tesla shares have dropped about 37% this year, closing at $155.45. the company has seen a decline in its sales of around 20% last year. First-quarter deliveries fell 8.5% year over year, the business revealed. This is the first decline since 2020 when the global pandemic impacted operations.

Musk’s 2023 plan was “a proposed path to reach a sustainable global energy economy through end-use electrification and sustainable electricity generation and storage.” Now, the company is also focusing on the development of Robotaxi, which will be a more affordable EV.

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