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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
  • Tesla laid off more than 10% of its workforce on Sunday night.

  • Some factory employees only realized they were laid off when their badges didn't work, sources said.

  • Staff at the Nevada factory waited two hours to enter because of badge checks, one source said.

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.

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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who were terminated received notice via their personal emails on Sunday night, and their access to Tesla systems was revoked, four workers said.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.