On Sunday night, Tesla CEO Elon Musk informed employees that the electric car maker was laying off more than 10% of its personnel, according to an internal document obtained by Business Insider. According to emails acquired by BI, Tesla assured workers they would receive their severance information “within 48 hours” in individual layoff warnings delivered in the hours following Musk’s companywide email.
Five former employees told Business Insider that the automaker appeared to be paying workers two months of severance pay, which means they will be paid until June 14. According to the five individuals, workers with a few months to several years of experience at Tesla paid out the same number of weeks.
According to BI, Tesla is also willing to reimburse the cost of COBRA health insurance for two months for employees who have coverage through the firm.
To get severance money, laid-off employees must sign the offered contract, which prohibits them from engaging in litigation or mass arbitration against the company, disclosing any of its trade secrets, or publicly defaming Tesla. These clauses are relatively standard in severance agreements.
According to a severance agreement obtained by BI, Tesla states that the agreement must be signed within five business days of delivery, and personnel will receive their severance pay 45 days after termination.
