Tesla Announces Layoffs Ahead of Quarterly Results

Tesla reveals plans to lay off over 6,000 employees in Texas and California.

  • Tesla reveals plans to lay off over 6,000 employees in Texas and California.
  • Layoffs attributed to declining demand and intensified competition in the EV market.
  • CEO Elon Musk highlights Tesla’s overall job creation amidst the layoffs.

Tesla has announced significant layoffs, affecting over 6,000 employees in Texas and California, as part of its strategy to address decreasing demand and shrinking margins. These measures come just ahead of the company’s quarterly results, anticipated to be disclosed by CEO Elon Musk.

The decision to reduce its global workforce by more than 10% was prompted by pressure from declining sales and heightened competition in the electric vehicle (EV) sector. Details of the layoffs emerged through notifications to the states of Texas and California, in compliance with US labour laws.

CEO Elon Musk emphasized Tesla’s overall job creation, stating the company has created over 30,000 manufacturing jobs in California alone. Despite the layoffs, Tesla’s stock in Austin, Texas, witnessed a slight rise, breaking a previous losing streak.

The layoffs in Texas will affect 12% of Tesla’s workforce in the greater Austin area, where the company’s gigafactory and headquarters are located. Additionally, 285 employees at Tesla’s Buffalo, New York facility will be impacted. Tesla’s headcount stood at over 140,000 at the end of last year, reflecting significant growth compared to previous years.