Elon Musk Tells Employees That Tesla Severance Packages Were 'Incorrectly Low' Tesla announced that it was cutting roughly 10% of its global workforce earlier this week.
By Emily Rella •
After announcing earlier this week that Tesla would be slashing roughly 10% of its global workforce, Elon Musk reportedly emailed affected employees on Wednesday evening, stating that some of their severance packages were too low.
"As we reorganize Tesla, it has come to my attention that some severance packages are incorrectly low," Musk wrote in the email obtained by CNBC. "My apologies for this mistake. It is being corrected immediately."
Little is known about the mass layoffs, specifically which departments were impacted and the exact number of employees let go. More information is expected to come to light when Tesla discusses Q1 2024 earnings with shareholders on April 23.
As of December 31, 2023, Tesla had 140,473 employees globally, per the company's 2023 annual report.
"There is nothing I hate more, but it must be done," Musk told employees on Monday upon news of the layoffs. "This will enable us to be lean, innovative, and hungry for the next growth phase cycle."
Though financials have not yet been reported, Tesla's vehicle deliveries declined by 8.5% year over year in the first quarter.
Related: Days After Layoffs, Tesla Pushes Stockholders to Approve Elon Musk's $56 Billion Pay Package
On Wednesday, the company asked shareholders to vote to approve a pay compensation package that grants Musk a $56 million salary. A judge called the package "unfathomable" earlier this year.
Shareholders are also being asked to approve relocating Tesla's business incorporation out of Delaware to Texas, a move Musk has been pushing.
The annual shareholders meeting is set to take place on June 13, per Bloomberg.
Related: 'Next Tesla' Electric Car Startups Hit Speed Bump: 'Investors Want To See Demand'
