ELON MUSK IS FIRING THOUSANDS OF MORE TESLA EMPLOYEES, NOTICES REVEAL OVER 6,000 JOB CUTS
Tesla, led by CEO Elon Musk, is reportedly planning for extensive job cuts, affecting over 6,000 employees across California and Texas. According to official notices filed under the Worker Adjustment and Retraining Notification (WARN) Act, 3,332 jobs will be eliminated in California, while 2,688 positions will be impacted in Austin, Texas.
These sweeping layoffs come as part of Tesla's broader restructuring initiative, disclosed just last week. The news comes just a few days after Elon Musk asserted in an internal memo that the company will cut more than 10 percent of its global workforce. The move, he explained, is aimed at optimising costs and improving productivity to navigate through challenges like dwindling sales and heightened competition in the electric vehicle sector.
The outcome of Tesla's restructuring reverberates through its key operational hubs. In California, 2,266 individuals at the Fremont plant, Tesla's first US vehicle assembly facility, and 486 employees at the Palo Alto engineering headquarters are facing termination, CNBC reports. Furthermore, the cuts have also reportedly extended to other locations across the state, including Burbank and Lathrop, impacting various facets of Tesla's operations, from manufacturing to customer service.
Meanwhile, the Lone Star State, where Tesla inaugurated its Texas EV and battery factory in 2022, is not spared from the employment shake-up. Austin, now dubbed as the epicenter of Tesla's future growth, witnesses a significant workforce reduction, raising questions about the company's long-term strategies in the region.
The timing of these layoffs, amidst Tesla's ambitious expansion plans, raises eyebrows. Despite recent investments in facilities, including the Austin factory and upcoming projects in Germany, Tesla now reportedly finds itself at a critical juncture, forced to reassess its operational efficiency amidst mounting challenges.
As news of the job cuts sends shockwaves through the industry, all eyes are on Tesla's executives, who are slated to address the restructuring during the company's quarterly earnings call later today.Â