Tesla’s on Workforce Reductions in California and Texas, Tesla recently announced significant workforce reductions, affecting 3,332 jobs in California and 2,688 jobs in Austin, Texas. These actions were disclosed through Worker Adjustment and Retraining Notification (WARN) Act letters filed in both states.
The layoffs are part of a broader restructuring initiative unveiled by the electric vehicle manufacturer last week.
In 2021, CEO Elon Musk relocated Tesla’s corporate headquarters from Palo Alto, California, to Austin, Texas.
Musk going to reduce global Workforce, Musk highlighted in an internal memo that Tesla is reducing its global headcount by over 10%, responding to challenges such as declining sales and heightened competition. The specifics of which departments or locations will be most affected were not disclosed.
Musk emphasized the importance of cost reduction and increasing productivity as Tesla prepares for its next growth phase.
A subsequent WARN notice filed in New York indicated the elimination of 285 positions at a factory in Buffalo.
Total employee in Tesla – As of December 2023, Tesla employed approximately 140,473 individuals.
Tesla celebrated the opening of its Texas EV and battery factory in April 2022 with a lively “cyber rodeo” event. The company now produces its Model Y crossover utility vehicles in Austin and has initiated the construction of its Cybertruck at this location.
Musk future Investment in Facilities planning are -Filing details with the Texas Department of Licensing and Regulation revealed Tesla’s plans to invest upwards of $770 million last year in expanding its Austin facilities for battery cell and drive unit manufacturing, among other purposes.
According to Tuesday’s WARN filings, affected employees do not have union representation or bumping rights, which allow more senior employees to displace those with less seniority.
Layoffs impact Across Various Locations, The California layoffs impacted 2,266 employees in Fremont and 486 employees in Palo Alto, affecting workers at Tesla’s factories, engineering offices, stores, showrooms, and service centers statewide.
Job reductions also occurred in Burbank and Lathrop, where Tesla manufactures spare parts and assembles Megapack battery energy storage systems.
Executives are scheduled to discuss the restructuring during Tesla’s upcoming quarterly earnings call at 5:30 p.m. ET.