CEO of Tesla Motors Elon Musk speaks on the Tesla Giga Texas manufacturing “Cyber Rodeo” grand opening celebration on April 7, 2022 in Austin, Texas.
Suzanne Cordeiro | AFP | Getty Photos
Tesla is eliminating round 12% of its workforce at a manufacturing facility in Austin, Texas, as a part of a broader restructuring the corporate introduced final week.
In accordance with a Employee Adjustment and Retraining Notification (WARN) Act letter on Tuesday, the layoffs have an effect on 2,688 workers on the facility in Travis County. In 2021, Tesla CEO Elon Musk moved the corporate’s company headquarters to Austin from Palo Alto, California.
Musk stated in an inner memo final week that Tesla was slicing greater than 10% of its international headcount as the electrical car maker reckons with flagging gross sales and elevated competitors. He did not say which departments or areas could be most impacted.
“As we put together the corporate for our subsequent section of development, this can be very necessary to take a look at each side of the corporate for price reductions and growing productiveness,” he wrote. A subsequent WARN discover filed in New York indicated that 285 of positions had been being eradicated at a manufacturing facility in Buffalo.
Tesla employed 140,473 folks as of December, in response to filings.
Tesla formally opened its Texas EV and battery manufacturing facility in April 2022, with a “cyber rodeo” celebration. The corporate now manufactures a few of its Mannequin Y crossover utility autos in Austin, and has began to construct its Cybertruck there.
Musk later referred to as the Austin manufacturing facility, and one other meeting plant in Germany, “gigantic cash furnaces,” in an interview with Tesla Homeowners Silicon Valley, a fan membership that promotes Tesla autos.
In accordance with filings with the Texas Division of Licensing and Regulation revealed, Tesla was planning to spend upward of $770 million final yr on the development of expanded amenities in Austin, together with for battery cell testing and manufacturing, cathode and drive unit manufacturing, and a die store, amongst different issues.
Tuesday’s WARN submitting stated that “not one of the workers are represented by a union and not one of the workers have bumping rights,” or the best of extra senior employees to interchange these with much less seniority.
Executives are anticipated to debate the restructuring on the corporate’s quarterly earnings name at 5:30 p.m. ET.
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