Tesla, the electric vehicle giant, has announced significant layoffs affecting its workforce in both Texas and California. According to notices filed with the Texas Workforce Commission and California Employment Development Department, obtained by Forbes, more than 2,600 workers in Austin and 3,300 across various cities in California will be impacted by the cuts, constituting approximately 10% of Tesla’s global workforce.
Specifically, Tesla will lay off 2,688 employees at its Tesla Headquarters Gigafactory in Austin over a two-week period starting June 14, as outlined in the April 22 Worker Adjustment and Retraining Notification (WARN) Act notice. Concurrently, 3,332 employees across Burbank, Fremont, Lathrop, and Palo Alto in California will face layoffs during the same timeframe, according to California WARN notices. It’s noteworthy that none of the affected employees are represented by a union, as indicated in the WARN notices from both states.
The WARN Act mandates companies to provide advance notice of mass layoffs or plant closures under certain circumstances, typically 60 days in advance, as per the Texas Workforce Commission. This announcement follows closely on the heels of Tesla’s declaration last week that it would be reducing its workforce by 10%, impacting over 10,000 employees globally.
The layoffs come amid a backdrop of challenges for Tesla, including declining stock performance and delivery shortcomings.
Meanwhile, Tesla issued a recall for nearly 3,900 Cybertrucks due to defective accelerator pedals that could lead to unintentional acceleration. This development adds to the array of challenges facing the company.
