"Violation of Regulations and Sudden Mass Layoffs"... Tesla Sued by Two Former Employees

Under Current Law, 60 Days' Prior Notice Required for Mass Layoffs
Concerns Over Economic Downturn... Elon Musk's 'Workforce Reduction' Policy

Two former Tesla employees have filed a lawsuit against the company. The photo shows the electric vehicle manufacturer Tesla's factory in Fremont, California, USA.
[Image source=Yonhap News]

[Asia Economy Reporter Hyunju Park] U.S. electric vehicle company Tesla has recently been sued for mass layoffs of employees without prior notice. According to current U.S. law, if more than 50 employees are laid off at a single workplace at once, a 60-day prior notice must be given.

On the 21st (local time), according to Bloomberg News and others, two plaintiffs filed a lawsuit at the U.S. Federal Western District Court in Texas, claiming that Tesla did not provide prior notice during the process of laying off about 500 employees from last month to this month. They were recently laid off after working for about five years at Tesla's battery factory in Nevada, USA.

The plaintiffs claim that Tesla notified layoffs on the 10th and 15th and processed the layoffs immediately without a grace period. They are demanding that Tesla pay wages equivalent to 60 days after the layoff notice.

This layoff occurred amid growing concerns about a U.S. economic recession, following Tesla CEO Elon Musk's announcement of a workforce reduction policy. On the 2nd, Musk sent an email titled "Global Hiring Freeze" to executives, announcing this layoff policy, and at the Qatar Economic Forum hosted by Bloomberg that day, he said, "We will reduce salaried staff by about 10% over the next three months."

Concerns about mass layoffs also arose within Twitter, which Musk recently agreed to acquire. On the 16th, in a video conference attended by all former Twitter employees, Musk said, "It is necessary to reasonably adjust personnel and costs. Currently, costs exceed revenue."

This content was produced with the assistance of AI translation services.