Tesla - wide layoff cycle that will significantly impact California, with 3,332 workers in four cities out of work in June.
Led by Elon Musk, the automaker revealed details about the planned layoffs through WARN documents filed in California on Monday, under the Worker Adjustment and Retraining Notification Act, which requires notice in the event of mass layoffs.
Tesla's upcoming job cuts are primarily affecting its Fremont facility, with 2,267 layoffs across a dozen different positions. Of those, more than 1,400 will be at the company's massive car factory, located at 45500 Fremont Blvd.
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Tesla parts distribution center and Megapack battery manufacturing plant are located. In addition, in Palo Alto, another 486 workers are planned to be laid off, including 237 employed at the company's engineering headquarters on Page Mill Road. It is worth noting that the company's main headquarters is located at a factory in Austin, Texas, which, according to reports, will face nearly 2,700 layoffs.
The job cuts are spreading to Southern California. According to a recent WARN notice, 64 Tesla employees in Burbank are set to be laid off, 30 of whom work at the dealership and service center.
Despite the novelty of the data from California, job cuts in the auto industry have been long-awaited, ever since a memo from Elon Musk was shared with the news network Electrek.
“Following a review of our company structure, we have made the difficult decision to reduce our workforce by more than 10% globally,” the CEO staff, the report said. “This decision weighs on me more than anything else, but it is a necessity.” The company did not respond to SFGATE’s questions about severance packages for the laid-off employees.
Even after revealing the extent of the layoffs in California on Tuesday, Elon Musk proudly announced on X (formerly Twitter)that his company has contributed to the creation of 30,000 jobs in the local industry.
See more: Tesla: Layoffs affect 14,000 employees
Tesla, the world's most valuable automaker, has recently faced fierce competition in the EV (electric vehicle). With sales declining, Tesla reported a 9% drop in revenue compared to the previous year during its latest earnings call on Tuesday. Still, Elon Musk managed to excite investors by announcing plans for a new, more affordable car model.
Source: sfgate.com
