(5MinNewsBreak.com) – Electric vehicles producer Tesla is executing the dismissal of 3,332 employees in California and 2,688 employees in Austin, Texas, as disclosed in the Worker Adjustment and Retraining Notification (WARN) Act letters and notices submitted in both states.
These job cuts are a segment of a larger restructuring initiative that the electric vehicle manufacturer announced the previous week, CNBC reports.
In 2021, Tesla’s CEO, Elon Musk, relocated the company’s corporate headquarters from Palo Alto, California, to Austin, Texas.
In a recent internal memo, Musk disclosed that Tesla would reduce its global workforce by over 10%, responding to declining sales and heightened competition.
“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” the billionaire declared.
He did not specify which departments or locations would be most impacted. A subsequent WARN notice in New York revealed that 285 jobs would be eliminated at a factory in Buffalo.
As of December 2023, Tesla employed a total of 140,473 individuals, according to company filings.
Tesla inaugurated its Texas EV and battery factory in April 2022 with a celebration dubbed a “cyber rodeo.”
The facility now produces some of Tesla’s Model Y crossover utility vehicles and has begun manufacturing its Cybertruck.
Musk later described the Austin factory, along with a manufacturing plant in Germany, as “gigantic money furnaces,” in a dialogue with Tesla Owners Silicon Valley, an advocacy group for Tesla vehicles.
Tesla had plans to invest over $770 million last year in expanding its facilities in Austin, as per documents submitted to the Texas Department of Licensing and Regulation.
This expansion was intended for various purposes, including battery cell testing and manufacturing, cathode and drive unit production, and operating a die shop.
The recent WARN notices indicated that “none of the employees are represented by a union and none of the employees have bumping rights,” which means that more senior employees cannot claim the positions of those with less seniority who are laid off.
The reductions in California affected 2,266 employees at Fremont, the site of Tesla’s first U.S. vehicle assembly plant, and 486 employees in Palo Alto, where Tesla’s engineering headquarters are located.
The layoffs impacted employees across the company’s factories, engineering offices, stores, showrooms, and service centers throughout the state.
Additional job cuts occurred in Burbank and Lathrop, where Tesla manufactures spare parts at a foundry and assembles Megapack battery energy storage systems.
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