Tesla Plans to Cut Hundreds More Jobs in California, Notice to Government Says

Tesla Plans to Cut Hundreds More Jobs in California, Notice to Government Says
In an aerial view, workers prepare brand new Tesla cars for delivery at the Tesla Fremont Factory on April 24, 2024 in Fremont, California. (Justin Sullivan/Getty Images)

Several hundred Tesla employees in the Bay Area are set to lose their jobs after the company notified state officials on May 13 that it will be conducting a fresh round of layoffs.

The company announced in early April that it had plans to cut 10 percent of its global roughly 140,000 strong workforce, documents showed.

“Over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth, there has been a duplication of roles and job functions in certain areas. We believe it is extremely important to look at every aspect of the Company for cost reductions and increasing productivity,” the company wrote last month.

“This action will prepare Tesla for our next phase of growth, as we are developing some of the most revolutionary technologies in auto, energy and artificial intelligence.”

According to the Texas-based automaker’s Worker Adjustment and Retraining Notification (WARN), the layoffs will affect over 600 workers at six of Tesla’s Bay Area facilities, including over 150 at the company’s 45500 Fremont Blvd. Plant and over 200 at Tesla’s Palo Alto facility.

The company, which relocated its headquarters from Palo Alto to Austin, Texas, in 2021, has initiated layoffs for the fifth consecutive week across a wide range of positions and job roles, including technicians, engineers, electricians, production associates, and athletic trainers.

According to Rissa Royal, Tesla’s human resources manager, who wrote to California’s Employment Development Department, the latest round of layoffs will commence on June 20 and last 14 days.

Tesla announced in April that it would cut almost 3,500 jobs across California, of which almost 3,000 are in the Bay Area, in layoffs that have affected a wider scope of the tech industry, including mega-corporations such as Google, Microsoft, Apple, and Meta.

“We believe it is extremely important to look at every aspect of the Company for cost reductions and increasing productivity. This action will prepare Tesla for our next phase of growth,” Tesla officials wrote in a document filed to the U.S. Securities and Exchange Commission last month.

In addition to the layoffs, the company also saw the exit of several senior executives.

According to the company, vehicle production and deliveries suffered a sharp decline in the first quarter of 2024, compared to the company’s performance in the last quarter of 2023.

NTD has contacted Tesla for more information and a statement confirming the number of layoffs but did not receive a reply before press time.

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