By Lore Ramirez
Apr 24, 2024, 12:51 PM EDT
After Last week Tesla announced a cut of more than 10% of its workforceunder the pressure of falling sales and the strong price battle that continues to increase in intensity between electric vehicle manufacturers, The company founded by Elon Musk continues with bad news for its employees. It has been made known that Tesla will lay off more than 6,000 people in Texas and California.
According to a Worker Adjustment and Retraining Notification, or WARN, notice, Tesla to lay off 6,020 employees in Texas and California. This figure is known thanks to a United States labor law that requires companies with 100 or more employees to provide 60 days’ notice of planned closures or mass layoffs.
How many jobs will Tesla cut in Texas and California?
According to information shared by Reuters, Tesla to lay off 3,332 people in California and eliminate 2,688 jobs in Texas starting June 14. Despite this upcoming wave of layoffs at Tesla, Elon Musk boasted yesterday on X (formerly Twitter) that the company has created more than 30,000 manufacturing jobs in California.
The Texas job cuts account for 12% of Tesla’s total workforce of 22,777 people in the greater Austin area, where its gigafactory and headquarters are located. On the other hand, Tesla’s global job cuts will include 285 employees at its Buffalo, New York facilitywhich house the labeling team for its Autopilot driver assistance software that makes fast-charging equipment.
Ahead of Tesla’s first-quarter results, which were released after markets on Tuesday, shares of the Austin, Texas-based company rose about 2% and were set to snap a seven-session losing streak that had dragged its shares down 19%.
How many people work at Tesla?
Until 2022 Tesla had more than 127,000 employees according to the company’s impact report of that same year. That number increased to 140,473 in December 2023 according to data shared by CNBC.
Problems and massive layoffs at Tesla
The new wave of layoffs at Tesla came before the company’s earnings conference call last Tuesdaywhere a drop in year-over-year revenue was expected to be announced for the first time since 2020 amid cuts, recalls, price cuts and a fight over potential $56 billion compensation package for CEO Elon Musk.
Last week alone Tesla recalled nearly 4,000 Cybertrucks due to accelerator defect which caused it to get stuck when pressed, which increased the risk of accidents; This covers all the pickup trucks Tesla has sold since the vehicle hit the market in November.
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