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| Tesla Layoffs: Plans to Cut Nearly 2,700 Workers at Austin, Texas Factory |
Tesla Plans Layoffs for 2,700 Workers at Austin, Texas Factory in June
Tesla is preparing to lay off nearly 2,700 workers at its Austin, Texas factory in June, as revealed by a Worker Adjustment and Retraining Notification (WARN) notice acquired by multiple sources.
The notice, which covers 2,688 employees, was posted on Monday under the WARN Act, a U.S. labor law mandating employers with 100 or more employees to provide 60 days' notice before planned closings or mass layoffs to safeguard workers and their families, as reported by Reuters.
According to Reuters, the layoffs are set to commence on June 14. Tesla's headquarters are currently situated in Austin.
These workforce reductions precede the company's upcoming earnings call scheduled for Tuesday, during which a year-over-year revenue decline is anticipated to be announced for the first time since 2020 amidst layoffs, recalls, price reductions, and controversies surrounding a potential $56 billion compensation package for CEO Elon Musk.
Recently, Tesla recalled nearly 4,000 Cybertrucks due to an accelerator defect that could cause it to stick when pressed, heightening the risk of accidents. This recall encompasses all Cybertrucks sold since the vehicle's market launch in November.
Monday's notification follows last week's layoff announcement at Tesla, where Musk disclosed in a memo obtained by Electrek and CNBC that 10% of global positions would be eliminated, including over 200 employees in Buffalo, New York. Some affected employees have reportedly already been denied system access, according to Electrek.