Tesla, the Texas-based automaker, has recently informed state officials that it will be conducting a fresh round of layoffs, resulting in several hundred employees in the Bay Area losing their jobs. This comes after the company announced in April its plans to cut 10 percent of its global workforce, which currently stands at around 140,000 employees.
The reason behind these job cuts is the need for cost reductions and increased productivity. Tesla has experienced rapid growth over the years, with multiple factories scaling globally. As a result, there has been a duplication of roles and job functions in certain areas. The company believes that reviewing every aspect of the organization is crucial to prepare for its next phase of growth, as it continues to develop revolutionary technologies in the automotive, energy, and artificial intelligence sectors.
According to Tesla’s Worker Adjustment and Retraining Notification (WARN), over 600 workers will be affected by the layoffs at six of the company’s Bay Area facilities. This includes more than 150 employees at the Fremont Blvd. Plant and over 200 at Tesla’s Palo Alto facility. The layoffs have been taking place for the past five weeks and have impacted various positions and job roles, including technicians, engineers, electricians, production associates, and athletic trainers.
The latest round of layoffs is scheduled to begin on June 20 and will last for 14 days, according to Rissa Royal, Tesla’s human resources manager. These job cuts are not isolated to Tesla alone. Other tech giants such as Google, Microsoft, Apple, and Meta have also been affected by layoffs in California.
In addition to the layoffs, Tesla has also witnessed the departure of several senior executives. This further highlights the challenges the company faces as it aims to navigate through this phase of restructuring.
The need for these cost-cutting measures can be attributed to a sharp decline in vehicle production and deliveries during the first quarter of 2024 compared to the previous quarter. Tesla’s performance has been impacted, necessitating adjustments to ensure long-term sustainability and growth.
NTD reached out to Tesla for more information and a statement confirming the number of layoffs but did not receive a response at the time of writing. It remains to be seen how these layoffs will shape the future of Tesla and its pursuit of innovative technologies in the automotive industry.
