Connect with us

Tech

Some Meta employees claim they’re not getting promised severance

Source image: https://www.cnbc.com/2022/12/05/some-meta-employees-claim-theyre-not-getting-promised-severance.html

Anwar Almojarkesh (L) and Alan Chalabi (R) from England take a photo at Meta (formerly Facebook) corporate headquarters in Menlo Park, California on November 9, 2022.

Josh Edelson | AFP | Getty Images

A group of Meta workers who joined the company via a corporate training program say they are receiving inferior severance packages compared to other workers who were recently laid off.

The employees are members of Meta’s Sourcer Development Program, intended to help workers from diverse backgrounds obtain careers in corporate technology recruiting. The Sourcer Development Program is part of Meta’s Pathways program, which helps people with non-traditional professional backgrounds obtain apprenticeships at the social networking giant for various roles.

Nearly every member of Meta’s Sourcer Development Program, more than 60 workers, was let go from the company as part of its massive layoff of more 11,000 workers earlier in November, multiple Meta employees told CNBC.

Several members of Meta’s Sourcer Development Program told CNBC they joined Meta in April as part of the company’s latest cohort. The employees said they were not contract workers and instead were categorized as short-term employees that received all the benefits of full-time employees, including insurance and retirement funds but not corporate stock packages. After completing the 12-month program, the employees would then be converted to full-time employees if they met the necessary criteria.

In a letter sent to Meta employees during the layoffs and posted online, Meta CEO Mark Zuckerberg said that the company would pay severance of 16 weeks of base pay plus two additional weeks for every year of service, with no cap. Zuckerberg added that Meta would cover the cost of healthcare for people and their families for six months.

But members of Meta’s Sourcer Development Program said they are only receiving 8 weeks of base pay and three months of COBRA.

The workers said it’s unclear why they are receiving lower severance packages than their colleagues, considering they were full-time employees and not contract staff.

On Nov. 16, the impacted workers sent a letter to Zuckerberg and other Meta executives, including Meta’s head of people Lori Goler and chief operating officer Javier Olivan, informing Meta management about their severance situation and asking for help resolving the issue.

“Even our former managers insisted we were confused and that all the information they were getting was that we were offered 16 weeks of pay and 6 months of health insurance,” the group wrote in the letter.

They later added, “Leadership may not have been aware that the last SDP class, which began in April 2022, was repeatedly assured by their leadership that any potential layoff would not impact their current employment but would likely impact the company’s ability to consider them for a full-time role.”

The impacted Meta workers said they have not received any replies from Meta’s human resources and management staff explaining their situation.

“During a Q&A recently, Lori even stated that the Pathways Programs would not be impacted,” the letter said. “It was based on this information that we were repeatedly assured by our managers that we didn’t need to start applying to positions outside of the company.”

“We understand that we are employed at-will and that business needs are always evolving and changing, but we couldn’t help but feel maybe there had been a mistake,” the group added.

The workers told CNBC that Meta has yet to reply to their letter, but has sent some members gift packages intended to congratulate them for completing the Sourcer Development Program.

“We hope that Meta offering only 8 weeks of base pay and 3 months of COBRA to the impacted April 2023 SDP class is a clerical mistake and was not done with intentional disregard or callousness,” the workers said in the letter.

Facebook did not immediately respond to a request for comment.

Lora Kolodny contributed to this report.

Watch: Meta will not overspend on Metaverse, still focused on social media and ad business

Meta will not overspend on Metaverse — still focused on social media and ad business, says Zuckerberg

Source: https://www.cnbc.com/2022/12/05/some-meta-employees-claim-theyre-not-getting-promised-severance.html

Continue Reading

Tech

Two children and two adults survive after Tesla plunges 250 feet off California cliff

View from the helicopter during a rescue operation after a vehicle carrying two adults and two children went over a cliff in Devil’s Slide, San Mateo county, California, U.S., January 2, 2023, plunging hundreds of feet, according to the Department of Forestry and Fire Protection, in this still image obtained from social media video.

CHP – Golden Gate Division | Reuters

Two adults and two children were rescued from a Tesla that plunged 250 feet off a cliff Monday morning in San Mateo County, California, officials said. 

The car was traveling southbound on the Pacific Coast Highway when it went over the cliff at Devil’s Slide, south of the Tom Lantos tunnel, and landed near the water’s edge below, the Cal Fire San Mateo-Santa Cruz Unit said. 

The car flipped and landed on its wheels in the fall, CAL FIRE/Coastside Fire Incident Commander Brian Pottenger said. Witnesses saw the accident and called 911. 

As crews were lowered down, they were able to see movement in the front seat, through their binoculars, meaning someone was alive.

“We were actually very shocked when we found survivable victims in the vehicle. So, that actually was a really hopeful moment for us,” Pottenger said. 

Fire officials called for helicopters to help hoist the survivors to safety. As they waited, firefighters rappelled to the scene and rescued the two children.

Rescue teams are seen at the scene as a Tesla with four occupants plunged over a cliff on Pacific Coast Highway 1 at Devils Slide on January 2, 2022 in San Mateo County, California, United States.

Tayfun Coskun | Anadolu Agency | Getty Images

The California Highway Patrol shared video on social media showing helicopters lower first responders to the scene to extricate and rescue two adults inside. 

All four were hospitalized. The San Mateo Sheriff’s Office said the two adults suffered non-life-threatening injuries and the two children were unharmed.

It’s not clear what caused the car to go over the cliff. CHP is handling the investigation. 

Continue Reading

Tech

Tesla shares tumble more than 10% following deliveries report

Tesla vehicles are shown at a sales and service center in Vista, California, June 3, 2022.

Mike Blake | Reuters

Shares of Tesla dropped 13% on Tuesday morning, a day after the electric auto maker reported fourth-quarter vehicle production and delivery numbers for 2022.

Deliveries are the closest approximation of sales disclosed by Tesla. The company reported 405,278 total deliveries for the quarter and 1.31 million total deliveries for the year. These numbers represented a record for the Elon Musk-led automaker and growth of 40% in deliveries year over year, but they fell shy of analysts’ expectations.

related investing news

Some analysts see a buying opportunity in Tesla for 2023 despite persistent demand pressures

CNBC Pro

According to a consensus of analysts’ estimates compiled by FactSet, as of Dec. 31, 2022, Wall Street was expecting Tesla to report around 427,000 deliveries for the final quarter of the year. Estimates updated in December, and included in the FactSet consensus, ranged from 409,000 to 433,000.

Those more recent estimates were in line with a company-compiled consensus distributed by Tesla investor relations Vice President Martin Viecha. 

Some Wall Street analysts think Tesla’s deliveries miss spells trouble for the electric vehicle maker, but others see a buying opportunity for the company in 2023.

Baird analyst Ben Kallo, who recently named Tesla a top pick for 2023, maintained an outperform rating and said he would remain a buyer of the stock ahead of the company’s earnings report, which is scheduled for Jan. 25.

“Q4 deliveries missed consensus but beat our estimates,” he said in a Tuesday note. “Importantly, production increased ~20% q/q which we expect to continue into 2023 as gigafactories in Berlin and Austin continue to ramp.”

Analysts at Goldman Sachs said they consider the delivery report to be an “incremental negative,” and view Tesla as a company that is “well positioned for long-term growth.” Goldman reiterated its buy rating on the stock in a Monday note and said that making vehicles more affordable in a challenging macroeconomic environment will be a “key driver of growth.”

“We believe key debates from here will be on whether vehicle deliveries can reaccelerate, margins and Tesla’s brand,” the analysts said.

Shares of Tesla suffered an extreme yearlong sell-off in 2022, prompting CEO Musk to tell employees in late December not to be “too bothered by stock market craziness.”

Musk has blamed Tesla’s declining share price in part on rising interest rates. But critics point to his rocky $44 billion Twitter takeover as a bigger culprit for the slide.

Morgan Stanley analysts said they think the company’s share price weakness is a “window of opportunity to buy.”

“Between a worsening macro backdrop, record high unaffordability, and increasing competition, there are hurdles for all auto companies to overcome in the year ahead,” they said in a note Tuesday. “However, within this backdrop we believe TSLA has the potential to widen its lead in the EV race, as it leverages its cost and scale advantages to further itself from the competition.”

CNBC’s Lora Kolodny and Michael Bloom contributed to this report.

Continue Reading

Tech

Tesla makes China boss Tom Zhu its highest-profile executive after Elon Musk

Tom Zhu Xiaotong, Tesla’s current executive in charge of China, speaks as a new Tesla experience store opens on Aug. 18, 2015 in Hangzhou, China.

Visual China Group | Getty Images

Tesla’s China chief Tom Zhu has been promoted to take direct oversight of the electric carmaker’s U.S. assembly plants as well as sales operations in North America and Europe, according to an internal posting of reporting lines reviewed by Reuters.

The Tesla posting showed that Zhu’s title of vice president for Greater China had not changed and that he also retained his responsibilities as Tesla’s most senior executive for sales in the rest of Asia as of Tuesday.

The move makes Zhu the highest-profile executive at Tesla after Chief Executive Elon Musk, with direct oversight for deliveries in all of its major markets and operations of its key production hubs.

The reporting lines for Zhu would keep Tesla’s vehicle design and development — both areas where Musk has been heavily involved — separate while creating an apparent deputy to Musk on the more near-term challenges of managing global sales and output.

Tesla did not immediately respond to a Reuters request for comment.

Reuters reviewed the organizational chart that had been posted internally by Tesla and confirmed the change with two people who had seen it. They asked not to be named because they were not authorized to discuss the matter.

Elon Musk needs to go back to Tesla and have others run Twitter, says Jim Cramer

Zhu and a team of his reports were brought in by Tesla late last year to troubleshoot production issues in the United States, driving an expectation among his colleagues then that he was being groomed for a bigger role.

Zhu’s appointment to a global role comes at a time when Musk has been distracted by his acquisition of Twitter and Tesla analysts and investors have urged action that would deepen the senior executive bench and allow him to focus on Tesla.

Under Zhu, Tesla’s Shanghai plant rebounded strongly from Covid lockdowns in China.

Tesla said on Monday that it had delivered 405,278 vehicles in the fourth quarter, short of Wall Street estimates, according to data compiled by Refinitiv.

The company had delivered 308,600 vehicles in the same period a year earlier.

The Tesla managers reporting to Zhu include: Jason Shawhan, director of manufacturing at the Gigafactory in Texas; Hrushikesh Sagar, senior director of manufacturing at Tesla’s Fremont factory; Joe Ward, vice president in charge of Europe, the Middle East and Africa; and Troy Jones, vice president of North America sales and service, according to the Tesla notice on reporting lines reviewed by Reuters.

Tesla country managers in China, Japan, Australia and New Zealand continued to report to Zhu, the notice showed.

Zhu does not have a direct report at Tesla’s still-ramping Berlin plant, but a person with knowledge of the matter said responsibility for that operation would come with the reporting line for Amsterdam-based Ward. Ward could not be immediately reached for comment.

Zhu, who was born in China but now holds a New Zealand passport, joined Tesla in 2014. Before that he was a project manager at a company established by his MBA classmates at Duke University, advising Chinese contractors working on infrastructure projects in Africa.

During Shanghai’s two-month Covid lockdown, Zhu was among the first batch of employees sleeping in the factory as they sought to keep it running, people who work with him have said.

Zhu, a no-fuss manager who sports a buzz cut, favors Tesla-branded fleece jackets and has lived in a government-subsidized apartment that is a 10-minute drive from the Shanghai Gigafactory. It was not immediately clear whether he would move after his promotion.

He takes charge of Tesla’s main production hubs at a time when the company is readying the launch of Cybertruck and a revamped version of its Model 3 sedan. Tesla has also said it is developing a cheaper electric vehicle but has not provided details on that plan.

When Tesla posted a picture on Twitter last month to celebrate its Austin, Texas, plant hitting a production milestone for its Model Y, Zhu was among hundreds of workers smiling on the factory floor.

Why China is beating the U.S. in electric vehicles

Allan Wang, who was promoted to vice president in charge of sales in China in July, was listed as the legal representative for the operation in registration papers filed with Chinese regulators in a change by the company last month.

Tesla board member James Murdoch said in November the company had recently identified a potential successor to Musk without naming the person. Murdoch did not respond to a request for comment.

Electrek previously reported that Zhu would take responsibility for U.S. sales, delivery and service.

Continue Reading

Trending