Tesla announced on Monday that it will be laying off more than 10 percent of its employees worldwide. The news came amid legal battles with former employees who sued CEO Elon Musk over severance pay. In one case, four former Twitter executives sued Musk for over $128 million in compensation after he acquired the messaging service and rebranded it as X.
CEO Elon Musk acknowledged that some severance packages had been mistakenly too low and apologized for the mistake, promising to fix it immediately. Reports suggest that some Tesla employees discovered they had been let go when their access cards no longer worked. It is unclear how many affected employees received inadequate severance packages.
Despite the challenges, Tesla continues to move forward with its electric car production and innovation efforts. The company had more than 140,000 employees at the end of last year and remains a key player in the automotive industry. This rare expression of remorse from Musk comes as he seeks to resolve legal disputes with former employees and ensure fair treatment for all staff members.
