On 16 April, Tesla announced that it would lay off 10% of its workforce, which would affect around 14,000 employees worldwide. The company has now disclosed the specific numbers for each location. More than 6,000 people will lose their jobs, with 3,332 jobs being eliminated in California and 2,699 in Texas, starting from 14 June. This equates to approximately 12% of the company’s workforce.
Tesla has sent notices to state authorities in compliance with the ’60 days’ notice prior to mass layoffs’ law in the US, which applies to establishments with 100 or more workers. Additionally, around 285 workers from Tesla’s Buffalo facility will be laid off, including members of the labeling team of Tesla’s autopilot driver-assistance software that manufactures fast-charging gear.
In 2021, Tesla had about 100,000 employees globally, which increased to over 140,000 in 2023. However, due to a decline in demand for vehicles, Elon Musk, the CEO of Tesla, had recently sent an internal memo stating that it was necessary to “streamline the company for the next phase of growth,” which would require some roles to be eliminated. Although Musk personally opposed downsizing, he explained that it was necessary for optimal efficiency. At the time, Musk clarified that such reorganizations take place approximately every five years to recalibrate for forthcoming growth cycles.
