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Tesla has begun sending out severance info to laid-off workers. Here's how much they're getting.

A graphic of a Tesla logo above a $100 bill in the shape of a downward graph.
Tesla started sending out severance information to laid-off employees overnight.Karol Serewis/SOPA Images/LightRocket via Getty Images; Chelsea Jia Feng/BI
  • Tesla has begun sending severance information to laid-off staff.

  • Five former workers told Business Insider the severance offer included two months' pay and health insurance.

  • On Sunday, Elon Musk told Tesla staff he was cutting more than 10% of the company's workforce.

Tesla has started sending out severance information to laid-off employees.

Tesla CEO Elon Musk told staff the electric-car maker was slashing more than 10% of its workforce on Sunday night, according to an internal memo viewed by Business Insider. In the individual layoff notices to impacted workers that were sent in the hours after Musk's companywide email, Tesla told workers they'd receive their severance information "within 48 hours," according to emails viewed by BI.

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The emails, which were sent to the workers' personal email accounts, notified staff they had been terminated effective immediately. The workers were also cut out of Tesla's internal systems around the same time, several former workers said.

The carmaker appears to be offering workers two months of severance — meaning the workers are set to be paid through June 14, as five former workers told BI. The severance packages didn't appear to be weighted based on the length of time workers had been with Tesla, as workers with anywhere from a few months to several years of experience at Tesla received the same number of weeks paid out, the five sources told BI.

Under the Worker Adjustment and Retraining Notification Act, companies that have more than 100 workers are required to provide 60 days of notice before a large-scale layoff. But Tesla's severance offer could address any potential penalties if it were found to have violated the WARN Act, which says laid-off employees can be entitled to up to 60 days of pay and benefits if not given proper advanced notice.