May 20, 2024 – According to a report by the Korean Central Daily, Tesla Korea has recently sent an email to all its employees, requesting them to voluntarily resign – a common form of layoffs in Korea.
Based on data from the Financial Supervisory Service, Tesla Korea, which was established in December 2015, currently employs around 480 individuals.
Following the announcement made by Tesla CEO Elon Musk to dissolve the company’s supercharger department, a charging team in Korea has already been disbanded. Tesla currently operates 160 supercharging stations in Korea, but they have canceled plans to install a supercharger station in Sokcho, Gangwon Province, which goes against a contract signed with the local municipal government in June of last year.
As part of Tesla’s plan for significant layoffs, the company is offering severance packages to its Korean employees. Those who have worked for five years or more will receive four months’ worth of salary as severance pay. Employees with one to five years of service will get three months’ salary, while those who have worked for less than a year will receive one month’s salary.
Employees who apply for voluntary resignation before May 16th have two options. They can either receive an additional two months’ salary on top of the basic severance package, with the condition that they leave by June 30th, or they can choose to get an extra month’s salary along with a one-month paid sabbatical, with a resignation date set for July 31st. For those who apply between May 17th and 22nd, they are eligible for an additional month’s salary on top of the basic severance package.
Meanwhile, internships and student contracts are set to be terminated, and currently, Tesla Korea has not posted any job openings on recruitment websites.
Tesla has been reducing prices for its vehicles globally, including in China and Korea. Thanks to cheaper Chinese batteries, last year Tesla lowered the price of the Model Y in Korea by approximately 20 million Korean won.
