Tesla Lays Off Over 10% of Workforce

Tesla announced significant layoffs on Sunday night, affecting over 10% of its global workforce. Some employees discovered they were laid off when their badges failed to grant them access to company facilities.

The layoffs impacted various roles, including engineers and production associates. At the Tesla factory in Sparks, Nevada, laid-off workers faced delays as security checked their badges, causing a two-hour backup on Monday morning.

Typically, security guards inspect badges on-site without scanning them directly. However, this time, workers were scanned as they exited shuttles transporting them between the factory and parking areas. Employees who had been laid off were identified and sent back on separate vans.

Affected employees received termination notices via personal emails on Sunday night, with their access to Tesla systems revoked. Elon Musk sent a company-wide email announcing the cuts shortly before midnight on Sunday. The email stated that the decision was made after a thorough review of the organization and that the layoffs would be effective immediately. Employees were informed that they would receive severance information within 48 hours.

Following the layoff announcement, at least two executives, SVP of powertrain and electrical engineering Drew Baglino and VP of public policy and business development Rohan Patel, resigned from the company.

Tesla’s layoffs come after a year of other high-profile tech companies, such as Google, also resorting to similar abrupt termination methods. Some former Google employees discovered they had been laid off when they were unable to access their office due to deactivated badges.

Tesla did not respond to requests for comments regarding the layoffs. Prior to the job cuts, Tesla employed over 140,000 workers across the globe, including more than 3,000 at its Nevada factory.

This move by Tesla raises questions about the company’s future plans and the broader impact on its workforce and operations.