Tesla layoffs update: California and Texas employees will see job loses as the EV maker moves to streamline its workforce

Earlier this month, Elon Musk sent a memo to Tesla employees announcing that the EV maker would cut “more than 10%” of its global workforce in order to help the company prepare for its next phase of growth. That reduction meant Tesla would let go of at least 14,000 of its 140,000-strong workforce. But as Tesla employs workers in numerous states and countries around the world, it wasn’t known which areas would be hit the hardest by the layoffs.

However, some states require companies to disclose in advance if they are planning to make a significant number of job cuts. And filings in California and Texas have revealed new details about Tesla’s plans, reports Reuters. The filings show that Tesla’s workforces in California and Texas are being hit particularly hard.

California will see the most job losses of the two states, with 3,332 jobs being cut starting on June 14, 2024. Texas isn’t far behind, however, with 2,688 jobs that will be cut beginning on the same date. Reuters says the Texas job cuts equal about 12% of Tesla’s 22,777 workers in the state. Tesla’s corporate headquarters is located in Austin, Texas.

A rough year for Tesla

Tesla’s job cuts come at a time when the company is mired in problems ranging from a falling stock price to heavy criticism of its newest vehicle, the Cybertruck. And yesterday, the company announced its Q1 earnings, which showed vehicle deliveries at their lowest levels since 2022. Still, Tesla stock is up in premarket trading this morning, although it’s not necessarily because of what the company has achieved. Rather, it is up on the promise that Tesla will launch a new affordable vehicle in the near future.

As for the layoffs, with over 6,000 accounted for in California and Texas, that still leaves at least 8,000 job cuts outstanding. As of the time of this writing, it is unknown whether a majority of those job cuts will be concentrated in just a few areas, or if they may be spread more evenly around the globe.

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