Get All Access for $5/mo

Some Tesla Factory Workers Realized They Were Laid Off When Security Scanned Their Badges and Sent Them Back on Shuttles, Sources Say On Monday morning, the officials picked out the workers who'd been laid off and sent them back in separate vans, the two workers said.

By Grace Kay

Key Takeaways

  • Tesla laid off more than 10% of its workforce on Sunday night.
  • Some factory employees only realized they were laid off when their badges didn't work, sources said.
  • Staff at the Nevada factory waited two hours to enter because of badge checks, one source said.
Nathan Howard and Justin Sullivan | Getty Images via Business Insider
Tesla CEO Elon Musk sent employees a memo about the layoffs late Sunday evening.

This article originally appeared on Business Insider.

Tesla told staff it was laying off more than 10% of its workforce on Sunday night, but some workers didn't realize they were laid off until they showed up at the company's facilities, five current or former workers told Business Insider.

The cuts impacted engineers and production associates alike. At Tesla's factory in Sparks, Nevada, workers faced a roughly two-hour line to get into the facility on Monday morning as a result of badge checks, one worker said.

At the factory, the security team was scanning the badges of workers coming out of the shuttles that ferry people between the factory and nearby parking lots, said two current Tesla workers who requested anonymity since they weren't authorized to speak about the matter. Typically, security guards inspect workers' badges at the site, but they don't usually scan them directly, the two workers said. On Monday morning, the officials picked out the workers who'd been laid off and sent them back in separate vans, the two workers said.

Three other former Tesla employees said workers at the Fremont factory were told by security that if their badges didn't work, they were no longer employed.

Tesla employees who were terminated received notice via their personal emails on Sunday night, and their access to Tesla systems was revoked, four workers said. The companywide email that Elon Musk sent announcing the cuts was delivered shortly before midnight PT on Sunday, according to a time stamp on the memo viewed by BI.

"We have done a thorough review of the organization and made the difficult decision to reduce our headcount globally. Unfortunately as a result, your position has been eliminated by this restructuring," read a separate email notifying impacted employees they'd been laid off, according to a copy viewed by BI.

The email sent directly to laid-off staff said the cuts would be effective immediately and workers would receive information regarding their severance within 48 hours.

The same day Tesla announced layoffs, at least two executives resigned from the company. The senior vice president of powertrain and electrical engineering, Drew Baglino, and the vice president of public policy and business development, Rohan Patel, said on X they had left Tesla as of Sunday.

A spokesperson for Tesla didn't respond to a request for comment. Ahead of the layoffs, Tesla employed more than 140,000 workers globally, including over 3,000 at its factory in Nevada.

Tesla workers aren't the first to unceremoniously discover they've been terminated while trying to access their former place of work. Last year, some former Google employees told BI they learned they'd been laid off when they couldn't badge into the office.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Starting a Business

I Left the Corporate World to Start a Chicken Coop Business — Here Are 3 Valuable Lessons I Learned Along the Way

Board meetings were traded for barnyards as a thriving new venture hatched.

Business News

'Passing By Wide Margins': Elon Musk Celebrates His 'Guaranteed Win' of the Highest Pay Package in U.S. Corporate History

Musk's Tesla pay package is almost 140 times higher than the annual pay of other high-performing CEOs.

Business News

Joey Chestnut Is Going From Nathan's to Netflix for a Competition 15 Years in the Making

Chestnut was banned from this year's Nathan's Hot Dog Eating Contest due to a "rival" contract. Now, he'll compete in a Netflix special instead.

Marketing

Are Your Business's Local Listings Accurate and Up-to-Date? Here Are the Consequences You Could Face If Not.

Why accurate local listings are crucial for business success — and how to avoid the pitfalls of outdated information.

Money & Finance

Day Traders Often Ignore This One Topic At Their Peril

Boring things — like taxes — can sometimes be highly profitable.

Growing a Business

He Immigrated to the U.S. and Got a Job at McDonald's — Then His Aversion to Being 'Too Comfortable' Led to a Fast-Growing Company That's Hard to Miss

Voyo Popovic launched his moving and storage company in 2018 — and he's been innovating in the industry ever since.