Tesla sued by its former employees over Elon Musk’s job cuts

Tesla’s former employees have accused the electric car company for illegally laying off staff without notice during Elon Musk’s recent cuts.

The two Nevada-based workers launched a class action lawsuit, accusing Tesla of failing to heed US laws on mass layoffs that require a 60-day warning period.

Musk said earlier this month that Tesla needed to cut around one in 10 salaried jobs, or around 10,000 people, because of a “super bad feeling” about the economy.

The lawsuit filed in Texas, where Tesla is based, claims the company has violated the Worker Adjustment and Retraining Notification act, which requires companies to give employees affected by mass redundancies 60 days notice and to pay them throughout that period.

The lawsuit is seeking pay and benefits for the 60-day period, legal fees and “any other and further relief to which plaintiffs and the class members may be justly entitled”.

It has been filed by John Lynch and Daxton Hartsfield, two employees at Tesla’s gigafactory in Nevada who were laid off on June 10 and June 15 respectively.

Mr Musk told executives at the start of the month that the company needed to freeze all hiring and that Tesla had become “overstaffed in many areas”.