Tesla Layoffs: Can Your Career Still Go Places? (Yes!)
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Tesla has recently announced a wave of layoffs, impacting thousands of employees across various departments. If you’re one of them, it’s undoubtedly a challenging time for you and your closest ones. However, there’s a solution to get back on track with your career. Here's a guide on how to navigate the transition effectively.
In this guide, you’ll:
- Learn the stories behind mass Tesla layoffs.
- Find out what you are entitled to after layoffs at Tesla.
- Get actionable advice on your next steps, including your resume, cover letter, and online presence.
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Tesla Layoffs 2024: Overview
Last year, on April 15th, Tesla’s CEO, Elon Musk, sent a memo to its workers, informing them about the “difficult decision to reduce (the) headcount by more than 10% globally.” Below, you can see a screenshot of the email shared on Reddit:
According to Electrek, the electric vehicle mogul laid off approximately 15,000 employees across the U.S. in April 2024. While every department was impacted, the layoffs were predominantly concentrated in Texas and California, Tesla's largest workforce hubs.
The question on everyone’s mind was, “Why is Tesla laying off employees?” Musk claimed the reason behind these layoffs was the company's rapid growth and the duplication of some roles and functions. X CEO mentioned preparing for the next growth phase.
It’s worth pointing out that Tesla's restructuring followed the news of a drop in first-quarter sales, resulting in a 30% decline in stock price earlier that year. One day after the layoffs were announced, the company took a 5% hit in its stock value, briefly dropping below a $500 billion valuation.
Some US employees hit by this huge wave of Tesla job cuts have reportedly already been replaced by foreign workers using H-1B visas.
Pro Tip: Seek information about layoffs from reliable, respected news sources to stay updated and minimize the confusion caused by different social media platforms.
What Are Laid-Off Tesla Employees Entitled to?
If you’re one of those employees laid off from Tesla, there are some things you should know about what you're entitled to receive from the company. Let’s focus on the two: severance and organizing key documents.
Severance Packages
When Tesla employees are laid off or terminated without cause, they may be entitled to substantial severance packages. This applies to full-time, part-time, and hourly workers, and in some cases, even independent contractors who were misclassified.
Laid-off employees were offered severance packages that included two months' pay and two months of health insurance coverage.
However, after reports emerged that some severance packages were "incorrectly low," CEO Elon Musk acknowledged the issue and apologized, stating that the mistake was being corrected immediately. Subsequently, some employees received updated severance offers with increased compensation, including additional pay and extended health insurance coverage. The specifics of these packages varied among employees.
Key Documents
Another thing you should do during this process is focus on collecting key documents that may become useful in the future during recruitment for your next position.
Here are some things to organize during lay-offs:
- Performance Records: Save reviews or evaluations that highlight your strengths and achievements. Use concrete, measurable examples to demonstrate your impact.
- Project Summaries: Outline your involvement in major Tesla projects, focusing on measurable outcomes.
- Employment Records: Keep accurate records of your job title, responsibilities, and employment dates. Also, save termination letters, severance agreements, and benefits details for reference.
- Professional References: Obtain written recommendations from your managers or colleagues to vouch for your skills and work ethic. These can strengthen your job applications.
- Certifications: Include relevant qualifications and technical credentials that showcase your expertise for specific roles.
- Awards and Recognition: Collect any awards or commendations you’ve received for outstanding performance in Tesla. These highlight your value and dedication to your work.
Pro Tip: The WARN Act requires companies with over 100 employees to give 60 days' notice or pay if mass layoffs occur. Employers can also meet this by keeping you on the payroll for 60 days post-layoff. If uncertain about your rights, consult a legal professional to ensure you receive what you're entitled to.
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Laid Off from Tesla: What’s Next?
Being laid off is never easy. Suddenly, you need to start rearranging your plans while trying to figure out what the future will look like. It’s a cliché, but try to stay calm and consider this event a new opportunity. All you need to get off the tiger’s back is a good plan. Focus on things within your power.
One of the things that you should consider now is your job application. If you haven’t updated it in a while, it’s worth reminding yourself of the rules for writing a resume and creating a cover letter. Below, you’ll find some useful resume tips and cover letter advice to help you quickly move from a laid-off ex-Tesla employee to a hot name on your recruiter's screen.
Tailor Your Resume to the Industry & Type of Work
Yes, famous companies look good on a resume. But sometimes, even such a prestigious company as Tesla might not be enough to secure an interview.
To make sure you impress your recruiter, you need to:
- Use the exact job title from the job offer to match ATS keywords perfectly.
- Highlight your quantifiable achievements from Tesla, and not only your past duties.
- Tailor your resume to a specific job offer to personalize it and show recruiters that you’re interested in that job and not just any job.
- Use action-oriented verbs to boost the readability of your document and prove your worth.
- Find a suitable modern resume template or a creative resume template that will work best for your specific job title.
Consider Your Key Strengths
Apart from describing your latest achievements from Tesla, make sure to showcase your skills on a resume the right way.
Here’s how it should be done:
- Find the skills mentioned in the job posting that caught your attention, and use them as keywords for your resume.
- Make a list of all the hard and soft skills you have.
- See which skills overlap.
- Include up to 10 most relevant skills in your resume.
Include Your Transferable Skills
While working at Tesla, you’ve surely developed skills that can easily be transferred to your next position.
These are your transferable skills, and they can include:
- Project Management
- Stress Management
- Time Management
- Problem-Solving Abilities
- Creative Thinking Skills
- Decision-Making Skills
- Organizational Skills
- Communication Skills
- Teamwork Skills
- Interpersonal Skills
- Critical Thinking Skills
- Conceptual Skills
Pro Tip: Be open and state that you’re no longer employed at Tesla because of their layoffs. Explain this in your resume, adding a note beneath the job entry. Additionally, mention it in your cover letter when talking about the reason for applying for the new role.
Tesla Layoffs: What Else Can You Do?
Apart from ensuring you get the right severance package, organizing documents, and preparing your application, there are some more steps you can (and should!) take to put your career back on track.
- Work on your LinkedIn profile: Update your profile picture, create a strong headline, highlight your achievements in bullet points, add more people to your network, and keep visiting it to look for new opportunities.
- Expand your professional network: Join Tesla alumni groups on LinkedIn and Facebook to connect with former colleagues, participate in industry-specific forums, attend virtual or in-person events to build connections, and engage with professional communities on platforms like Reddit, Quora, or Facebook.
- Explore growing industries: Focus on sectors with high growth potential, such as renewable energy, AI, autonomous vehicles, and advanced manufacturing. Use job boards like Glassdoor, FlexJobs, Indeed, Dice, and LinkedIn to identify opportunities.
- Consider upskilling: To enhance your qualifications, consider getting well-respected certifications like Six Sigma, PMP, or AI-focused programs.
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Being laid off isn’t easy. But it’s not the end of the world, not to mention the end of your career. With the right plan, you'll be able to get back on track quickly. Good luck. You’ve got this.
Have you got any more questions? Reach out in the comment section below and let’s talk!
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This article has been reviewed by our editorial team to make sure it follows Zety's editorial guidelines. We’re committed to sharing our expertise and giving you trustworthy career advice tailored to your needs. High-quality content is what brings over 40 million readers to our site every year. But we don't stop there. Our team conducts original research to understand the job market better, and we pride ourselves on being quoted by top universities and prime media outlets from around the world.
Sources
- Electrek: Tesla lays off ‘more than 10%’ of its global workforce
- Electrek: Tesla replaced laid-off US workers with foreign workers using H-1B visas that Musk want to increase
- Morningstar: Tesla Stock Is Down 30% In 2024. Is It a Buy?
- CNBC: Tesla shares fall to lowest in almost a year after job cuts heighten concerns about waning demand
- USA Today: Tesla reportedly replacing some laid-off US workers with those holding H-1B visas
- Business Insider: Tesla has begun sending out severance info to laid-off workers. Here's how much they're getting.
- Business Insider: Elon Musk apologized for 'incorrectly low' Tesla severance packages
- Worker Adjustment And Retiring Notification (WARN): Employer’s Guide to Advance Notice of Closings and Layoffs
