 "Tesla to terminate 6000 employees from Texas, California, says layoffs will save $1bn annually")
Tesla has announced plans to lay off 6,020 employees in Texas and California as part of its strategy to address declining demand and shrinking profit margins.
Last week, Tesla disclosed that they will be letting more than 10 per cent of its global workforce go, citing pressure from declining sales and increased competition among electric vehicle (EV) manufacturers. However, the exact number of affected employees was not disclosed initially.
Chief Financial Officer Vaibhav Taneja said that the job cuts will save the EV company at least over $1 billion annually in costs. taneja also said that Tesla plans to “accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025. The new vehicles will include more affordable models."
Details of the layoffs emerged through notifications to the states of Texas and California on Monday, complying with US labour laws requiring advance notification of planned closings or mass layoffs for companies with 100 or more employees.
According to the notices, Tesla will cut 3,332 jobs in California and 2,688 positions in Texas, with the layoffs scheduled to start on June 14.
CEO Elon Musk used the social media platform X to underscore Tesla’s overall job creation, stating, “Tesla has now created over 30,000 manufacturing jobs in California!”
Prior to the release of its first-quarter results, Tesla’s stock, headquartered in Austin, Texas, experienced a 2% increase, breaking a seven-session losing streak that had previously resulted in a 19% decline.
The job cuts in Texas represent 12% of Tesla’s total workforce of 22,777 in the greater Austin area, where its Gigafactory and headquarters are located.
The global job cuts will also affect 285 employees at Tesla’s Buffalo, New York facility, which houses the labelling team for its Autopilot driver assistance software.
Impact Shorts
More ShortsAccording to filings with US regulators, Tesla’s headcount stood at over 140,000 at the end of last year, up from around 100,000 in 2021.
(With inputs from agencies)
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
