On 16 April Tesla had revealed its intention to let go 10 per cent of its workforce, affecting about 14,000 employees, globally.
Now, specific numbers have been revealed for the locations. More than 6,000 people will lose their jobs, with 3,332 jobs being axed in Califonia and 2,699 in Texas, starting 14 June. That means, about 12 per cent of the workforce in The company has sent notices to the state authorities in compliance with the ‘60 days’ notice prior to mass layoffs’ law in the US. The law is applicable to establishments with 100 or more workers.
About 285 workers from its Buffalo facility will also be laid off, that is, members of the labeling team of Tesla’s autopilot driver-assistance software that manufactures fast-charging gear.
In 2021, the global headcount at Tesla was about 1,00,000, which went up to over 1,40,000 in 2023.
Following a decline in demand for vehicle, Elon Musk, CEO, Tesla, had conveyed in an internal memo not long back, that it was necessary to “streamline the company for the next phase of growth,” for which some roles would have to be axed. He had indicated that he personally was against downsizing, but the move had to be resorted to for optimal efficiency. At the time, Musk had clarified on X that such reorganisations take place approximately every five years to recalibrate for forthcoming growth cycles.