Transportation

Some Tesla factory workers realized they were laid off when security scanned their badges and sent them back on shuttles, sources say

A composite image of Elon Musk and the parking lot of the Tesla factory in Fremont, California.
Tesla CEO Elon Musk sent employees a memo about the layoffs late Sunday evening. Nathan Howard and Justin Sullivan via Getty Images
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Tesla told staff it was laying off more than 10% of its workforce on Sunday night, but some workers didn't realize they were laid off until they showed up at the company's facilities, five current or former workers told Business Insider.

The cuts impacted engineers and production associates alike. At Tesla's factory in Sparks, Nevada, workers faced a roughly two-hour line to get into the facility on Monday morning as a result of badge checks, one worker said.

At the factory, the security team was scanning the badges of workers coming out of the shuttles that ferry people between the factory and nearby parking lots, said two current Tesla workers who requested anonymity since they weren't authorized to speak about the matter. Typically, security guards inspect workers' badges at the site, but they don't usually scan them directly, the two workers said. On Monday morning, the officials picked out the workers who'd been laid off and sent them back in separate vans, the two workers said.

Three other former Tesla employees said workers at the Fremont factory were told by security that if their badges didn't work, they were no longer employed.

Tesla employees who were terminated received notice via their personal emails on Sunday night, and their access to Tesla systems was revoked, four workers said. The companywide email that Elon Musk sent announcing the cuts was delivered shortly before midnight PT on Sunday, according to a time stamp on the memo viewed by BI.

"We have done a thorough review of the organization and made the difficult decision to reduce our headcount globally. Unfortunately as a result, your position has been eliminated by this restructuring," read a separate email notifying impacted employees they'd been laid off, according to a copy viewed by BI.

The email sent directly to laid-off staff said the cuts would be effective immediately and workers would receive information regarding their severance within 48 hours.

The same day Tesla announced layoffs, at least two executives resigned from the company. The senior vice president of powertrain and electrical engineering, Drew Baglino, and the vice president of public policy and business development, Rohan Patel, said on X they had left Tesla as of Sunday.

A spokesperson for Tesla didn't respond to a request for comment. Ahead of the layoffs, Tesla employed more than 140,000 workers globally, including over 3,000 at its factory in Nevada.

Tesla workers aren't the first to unceremoniously discover they've been terminated while trying to access their former place of work. Last year, some former Google employees told BI they learned they'd been laid off when they couldn't badge into the office.

Do you work for Tesla or have a tip? Reach out to the reporter via a non-work email at gkay@jkmperu.com

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Grace Kay
Grace Kay was a Correspondent on Business Insider’s enterprise desk, where she covered the inner workings of Tesla, Elon Musk’s AI startup, xAI, and the broader robotics and electric vehicle industries.Her stories have been cited by multiple publications, including Reuters, Bloomberg, and CNBC. Before joining Business Insider, she worked at Bloomberg and Forbes.Tesla: Inside 'Project Rodeo,' the Tesla effort pushing the limits of self-driving technologyInternal Tesla salary database shows Elon Musk's strategy: Lower salaries, bigger stock grantsTesla tells staff it plans to roll out its Robotaxi service in San Francisco this weekendTesla has been working on modified Model Ys for its Robotaxi programTesla prioritizes Musk's and other 'VIP' drivers' data to train self-driving softwareAshok Elluswamy is the most powerful Tesla executive you've never heard ofxAI:Internal documents reveal how Elon Musk's xAI trains Grok to be the anti-woke chatbotXAI's Macrohard project stalls as Tesla ramps up a similar AI agent effortElon Musk's xAI plans to supply computing power to coding startup CursorWar rooms, group chats, and video games: Inside Elon Musk's AI startupBehind Grok's 'sexy' settings, workers review explicit and disturbing contentElon Musk's xAI lays off hundreds of workers tasked with training GrokEVs and robots:Fisker employees are fixing some customers' cars with parts from the company's vehicle 'graveyard,' sources sayFisker Ocean reservation cancellations top 40,000 as the EV company tries to fight off bankruptcy, leaked data showsInside the downfall of Henrik Fisker's second automotive startup, which just filed for bankruptcyInside the glass-walled Tesla lab where workers train the Optimus robot to act like a humanInside OpenAI's renewed push into robotics