Tesla CEO Elon Musk addressed an internal issue, acknowledging that the company had mistakenly sent out severance packages with lower-than-intended amounts to some laid-off employees this week.
In a brief internal email reviewed by CNBC, Musk apologized for the error and assured employees that the issue would be rectified promptly.
“As we reorganize Tesla, it has come to my attention that some severance packages are incorrectly low,” Musk wrote in the email. “My apologies for this mistake. It is being corrected immediately.”
Tesla, which announced earlier this week that it would be reducing its global workforce by more than 10%, totaling around 140,000 employees as of the end of 2023, did not immediately respond to requests for comment on the issue.
Details about the layoffs have been scarce, but Musk mentioned in a companywide memo on Monday that the layoffs were aimed at preparing the company for its next phase of growth.
The electric vehicle manufacturer recently signaled a shift in strategy, opting to focus on robotaxi development instead of producing a more affordable electric vehicle as previously planned. Musk appeared to confirm this shift in a post on X on Tuesday.
Tesla is scheduled to discuss its first-quarter results with shareholders on April 23, during which executives are expected to provide more information about the restructuring and its impact on various departments.
In a proxy filing released on Wednesday, Tesla sought shareholder approval for a CEO pay package for Musk, similar to the record compensation plan granted to him in 2018. However, Musk’s earlier CEO pay plan, valued at $56 billion, was voided in a ruling by Delaware chancery court judge Kathaleen McCormick.
Tesla shares have declined approximately 37% since the beginning of the year, closing at $155.45 on Wednesday.
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