By Lore Ramirez
May 9, 2024, 12:42 PM EDT
Layoffs at Tesla continue to be the order of the day and it has been confirmed that it plans to cut 316 jobs in Buffalo, New York. In Tesla’s most recent filing with the New York Department of Labor, the company indicated that five more employees are expected to be laid off starting August 1 at the Buffalo plant. The notice was presented last Friday and was published this Tuesday.
Before this latest notice, Tesla had already notified that more than 300 Buffalo, New York employees would be laid off in the summer of 2024. The presentation was published under the Worker Adjustment and Retraining Notification Act, or WARN, which requires employers with 100 or more employees to provide 60 days’ notice of layoffs mass or planned closures to protect workers.
Wave of massive layoffs at Tesla
The news of the layoffs at Tesla plant in Buffalo, New Yorkcomes a week after the company fired two executives and nearly 500 employees of its charging station team, or Supercharger, amid highly publicized plans for the company to reduce its workforce by 10%.
In mid-April, Tesla announced that it would lay off 10% of its global workforce. to eliminate “duplication of job roles and functions in certain areas” amid its rapid growth, according to a memo from Elon Musk obtained by Electrek and CNBC.
“As we prepare the company for our next phase of growth, it is extremely important to examine all aspects of the company to reduce costs and increase productivity,” Musk explained in the memo.
Employees affected by the wave of layoffs at Tesla
Besides 316 workers confirmed to lose their jobs at Tesla in BuffaloNew York and the charging station team of more than 500 people, there are also:
- 2,700 employees at Tesla factory in Austin, Texas who will be out of work in June
- 2,735 Bay Area employees out of work in June
“We hope these actions make it clear that we must be absolutely tough on staffing and cost-cutting. While some executive staff take this seriously, most still do not,” Elon Musk wrote in an email to company executives, according to The Information.
Tesla’s current situation
The wave of layoffs at Tesla It occurs in the midst of a company results call in April, where a year-over-year drop in revenue was announced, for the first time, since 2020. Added to this are price cuts, the fight for a possible $56 billion pay package for Muskas well as important recalls from the market.
During the same week Tesla Recalls Nearly 4,000 Cybertrucks Due to Throttle Defect which caused it to get stuck when pressed, which increases the risk of accidents; This issue covers every pickup truck Tesla has sold since the vehicle hit the market in November.
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