Elon Musk admits Tesla sent ‘incorrectly low’ severance package to laid off employees: ‘My apologies for…’
Elon Musk recently admitted that his company Tesla sent an ‘incorrectly low’ severance package to its former employees. The message was sent to company employees in a mail in which Musk assured that the mistake has been corrected immediately
Days after Tesla announced 10% global job cuts because of a fall in profit, Elon Musk in an internal memo admitted that Tesla sent ‘incorrectly low’ severance packages to some of its laid-off employees, reported Bloomberg citing sources.
“As we reorganise Tesla it has come to my attention that some severance packages are incorrectly low,” Musk said in a short email sent to employees on Wednesday and seen by Bloomberg News. “My apologies for this mistake. It is being corrected immediately.”
The exact number of former employees affected by ‘low’ severance pay is still unknown. Earlier this week, the Electric Vehicle manufacturer announced it would reduce its global headcount by more than 10%. The decision has come in the backdrop of Tesla's struggle to maintain its profit margins and compete with other EV market players. Soon after the announcement, several Tesla employees shared their experience of suddenly being unable to enter buildings when they arrived for work.
“Tried to badge in, and the security guard took my badge and told me I was laid off,” wrote Nico Murillo, a former production supervisor, on LinkedIn. “Sat in my car in disbelief,” reported Bloomberg.
Elon Musk's visit to India
As Elon Musk's Tesla continues to face pressure to improve its profit in global markets, the EV maker will be making an entry in India soon. Billionaire Elon Musk will visit India on Sunday and is likely to make a big investment announcement after meeting Prime Minister Narendra Modi and other leaders and industry players. According to several media reports, Elon Musk's visit to India can mark big announcement for his company Tesla as well as Starlink. Musk's satellite internet operator firm is set to receive initial approvals to operate in India, a government source told AFP.
Tesla is currently battling increased Chinese competition and a demand slump in the United States, with reports claiming the company plans to slash its workforce.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.