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Elon Musk apology: Tesla severance packages 'Incorrectly Low'" to laid-off employees

Tesla CEO Elon Musk sent an internal email this week, acknowledging that some severance packages given to laid-off employees were too low. Musk apologized for the error and stated that corrections were underway. “As we reorganize Tesla it has come to my attention that some severance packages are incorrectly low, my apologies for this mistake. […]

Elon Musk
Elon Musk

Tesla CEO Elon Musk sent an internal email this week, acknowledging that some severance packages given to laid-off employees were too low. Musk apologized for the error and stated that corrections were underway.

“As we reorganize Tesla it has come to my attention that some severance packages are incorrectly low, my apologies for this mistake. It is being corrected immediately.” Musk wrote in the brief email.

Earlier in the week, Tesla announced a workforce reduction of over 10%, affecting its global workforce of around 140,000 employees as of 2023. While specific details about the layoffs remain scarce, Musk mentioned in a companywide memo that these changes were necessary to prepare for future growth phases.

Recent reports indicated Tesla’s shift in strategy towards prioritizing robotaxi development over an earlier plan for a more affordable electric vehicle. This move was seemingly confirmed by Musk’s post on X.

Tesla’s first-quarter deliveries saw an 8.5% year-over-year decline, the first drop since 2020 due to pandemic disruptions. The company’s upcoming shareholder meeting on April 23 is expected to shed more light on these developments, including restructuring details and impacted departments.

Tesla asked shareholders to approve a CEO pay package for Musk in a proxy statement released on Wednesday. This package is equal to the record compensation plan that Tesla granted Musk in 2018.

Judge Kathaleen McCormick of Delaware Chancery Court invalidated  Elon Musk’s previous $56 billion CEO pay proposal, finding among other things that Musk controlled Tesla in his capacity as CEO and that the board’s compensation committee lacked independence.

 

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