Recently, some Tesla employees who were laid off faced issues with their severance packages, as CEO Elon Musk acknowledged that some packages were incorrectly low. The company had announced plans to lay off 10% of its workforce in a SEC filing earlier in the week, potentially resulting in 14,000 job losses out of over 140,400 employees.
Musk apologized for the mistake and assured employees that it was being corrected immediately. The layoffs were attributed to the duplication of roles and job functions amid the company’s rapid growth. Additionally, Tesla’s senior vice president of powertrain and energy engineering, Andrew Baglino, left the company after an 18-year tenure.
The electric car manufacturer highlighted the importance of cost reductions and increasing productivity to prepare for future growth. This announcement came after Tesla reported a decline in quarterly deliveries for the first time in nearly four years, which fell short of Wall Street analysts’ estimates.
In late January, Tesla unveiled plans for the global expansion of its next-generation vehicle platform. Musk also refuted a Reuters report that claimed the company had scrapped plans for a low-cost car. Despite these challenges, Tesla remains focused on maintaining its position as a leader in the electric vehicle market. Be sure to stay tuned to KP INSIDER for the latest updates on this developing story.