Tesla Inc. was sued by some former employees who claim the company’s decision to lay off about 10% of its workforce violated federal law by failing to provide the required advance notice for the job cuts.
The so-called WARN Act requires companies to provide 60-day notice before any mass layoff affecting 50 or more employees at a single site. Lynch said he was notified June 10 that he’d been terminated, effective immediately, and Hartsfield said he was notified June 15.The Tesla chief executive said the electric-car maker would cut staff as he shared a dire view of the economy.
In early June, Chief Executive Elon Musk said in an email to Tesla executives that he had a “super bad feeling” about the direction of the economy and planned to reduce its salaried workforce by 10% and pause hiring, according to Reuters. In another email, he said Tesla would increase its overall head count this year.
More contorted reporting from the disgusting LATIMES