Tesla The company will eliminate 3,332 jobs in California and 2,688 jobs in Austin, Texas, according to Worker Adjustment and Retraining Notification (WARN) Act letters and notices filed in two states.
The layoffs are part of a broader restructuring announced by the electric car maker last week.
In 2021, Tesla CEO Musk will move the company’s headquarters from Palo Alto, California to Austin.
Musk said in an internal memo last week that Tesla would cut more than 10% of its global workforce due to weak sales and increased competition from the electric car maker. He did not reveal which departments or locations were most affected.
“As we prepare the company for its next phase of growth, it is extremely important to consider cost reduction and productivity improvements from all aspects of the company,” he wrote. A subsequent WARN notice filed in New York revealed that the Buffalo family The factory will eliminate 285 positions.
Documents show that as of December 2023, Tesla’s total number of employees was 140,473.
Tesla officially opened its Texas electric vehicle and battery factory in April 2022 and held a “cyber rodeo” party. The company currently builds some of its Model Y crossover utility vehicles in Austin and has begun building the Cybertruck there.
Musk later called the Austin plant and another assembly plant in Germany a “giant melting pot of money” in an interview with Tesla Owners Silicon Valley, a fan club that promotes Tesla vehicles.
Tesla last year planned to spend $770 million to expand facilities in Austin that would include battery facilities, according to documents filed with the Texas Department of Licensing and Regulation cell testing and manufacturing, cathode and Drive unit Manufacturing, plus mold shop and more.
Tuesday’s WARN filing said “none of the employees are represented by a union and no employee has collision rights” or the right of a senior worker to replace a less senior worker.
The layoffs in California include 2,266 employees in Fremont, where Tesla’s first U.S. vehicle assembly plant is located, and 486 employees in Palo Alto, where Tesla’s engineering headquarters is located. The layoffs affect workers at the company’s factories, engineering offices, stores, showrooms and service centers across the state.
Jobs were also cut in Burbank and Lathrop, where Tesla’s foundries produce parts and assemble Megapack, battery energy storage systems.
Executives are expected to discuss the restructuring during the company’s quarterly earnings call at 5:30 p.m. ET.
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