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Musk apologized for Tesla's “incorrectly low” compensation to its former employees

Musk apologized for Tesla's “incorrectly low” compensation to its former employees

Following a notable reduction in Tesla's workforce, Musk admitted that reduced severance packages were improperly sent to former employees, and promised to make amends. (Effy)

Elon Musk said some of the severance payments sent to Tesla Inc. employees… Ex as part of the largest workforce reduction in its history was extremely low.

“As we reorganize Tesla“I have noticed that some severance packages are incorrectly low,” Musk said in a brief email sent to employees on Wednesday that I reviewed. Bloomberg News. “My apologies for this error. It will be corrected immediately,” he added.

It is unclear how many former employees are affected. The email was first reported by CNBC.

This email represents a rare show of remorse on his part muskwhich handles lawsuits filed by former employees and executives of a company Twitter About compensation. Earlier this week, the billionaire made the announcement Tesla It will cut its global workforce by more than 10% as the automaker battles a demand slowdown Electric car.

Former employees of Tesla They shared stories on social media about how they were suddenly unable to enter buildings when they arrived for work. “I tried to get in and the security guard took my badge and told me I was kicked out,” he wrote. Nico Morello, former production supervisor, on LinkedIn. “I sat in the car in disbelief,” he said.

Amid massive job cuts, which may approach 20% in some departments, SVP Drew Baglino He resigned from the company.

Musk faces criticism for his handling of layoffs at Tesla, accepting mistakes in compensation and ensuring immediate corrections. (EFE/Philip Singer)

It's unclear whether the departure of Tesla's top executives is related to the broader problems facing the automaker. Electric car. Car deliveries earlier this month missed expectations by a wide margin, recording their first quarterly decline in four years.

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Many analysts are preparing for the possibility of a decline in the manufacturer's sales during the year, citing slow production of its latest model – Cybertruck– and temporarily halt new products until the company begins production of a next-generation car late next year.

Autobiographer musk, Walter Isaacsondescribed Baglino Like a cute engineer with an easy laugh. In his book about CEO L Tesla Published last year, the author recounts his first tense encounter Baglino He spoke with the leader about how many battery cells the company would need to reach its autonomy goal.

“I never want to be in another meeting with Elon,” Isaacson quoted him as saying. Baglino He told the co-founder of Tesla J.B. Straubelwho left the company in 2019 but joined its board of directors last year.

Straubel reassured Baglino, who was quoted as saying that Musk's calculations about the battery cells turned out to be correct, Isaacson wrote.

Baglino He has made about $96 million in periodic stock sales since being named senior vice president and has had to start publicly disclosing his transactions, according to calculations he conducted. Bloomberg.

©2024 Bloomberg L.P