Topline
More than 2,600 Tesla workers in Austin and 3,300 across California will be laid off as part of the electric vehicle maker’s cuts to 10% of its global workforce, according to notices filed with the Texas Workforce Commission and California Employment Development Department obtained by Forbes.
Key Facts
Tesla will lay off 2,688 workers at its Tesla Headquarters Gigafactory in Austin during a two-week period beginning June 14, according to the April 22 Worker Adjustment and Retraining Notification (WARN) Act notice.
The electric vehicle maker will also lay off 3,332 employees in California across multiple cities (Burbank, Fremont, Lathrop and Palo Al to) during the same time frame, according to California WARN notices.
None of the affected employees are represented by a union, according to WARN notices from both states.
The WARN Act requires companies “under certain circumstances” to provide notice of mass layoffs or plant closures 60 days in advance, according to the Texas Workforce Commission.
The notices come less than a week after Tesla announced it would be slashing 10% of its global workforce—affecting more than 10,000 employees.
Representatives for Tesla did not immediately respond to Forbes’ requests for comment.
Big Number
More than 22,000. That’s how many people are employed at Tesla’s Gigafactory, according to an April 15 report from the Austin-American Statesman.
What To Watch For
Tesla is expected to release its first-quarter earning reports Tuesday afternoon.
Tangent
Tesla issued a recall Friday for nearly 3,900 Cybertrucks over defective accelerator pedals that could cause the vehicles to unintentionally accelerate. The affected pedals could dislodge when high pressure is applied, potentially causing the accidental acceleration.
Key Background
Tesla announced the massive layoffs amid a series of mounting challenges for the company, including sliding stocks and underperforming delivery—with the electric vehicle maker falling short in its first-quarter delivery report, released early April, for the first time since 2020. The last round of major layoffs for the company came in June 2022, when around 3.5% of its total workforce was slashed, according to CNBC. More than 3,000 workers were laid off in 2019 and about 9% of the electric vehicle maker’s workforce was also cut in 2018. Bloomberg reported in February that managers were required to disclose whether employees’ roles were crucial, preceding the most recent round of cuts.
Further Reading
Tesla Stock Slides Again On ‘Ominous’ Reports Of Mass Layoffs (Forbes)
Here’s What To Look For In Tesla’s Crucial Earnings Report Tuesday (Forbes)
Here’s Why Tesla Is The Worst-Performing Major Stock This Year (Forbes)