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Tesla Continues Layoffs, Cuts 600 California Jobs

In the latest wave of layoffs, Tesla has eliminated positions ranging from entry-level to director roles
May 19, 2024

In a recent move amidst Tesla's significant restructuring efforts, the renowned electric-vehicle manufacturer has informed the California Employment Development Department of its decision to reduce its workforce by approximately 600 employees across its manufacturing plants and engineering offices spanning from Fremont to Palo Alto.

The recent wave of layoffs has impacted a wide range of roles within the company, from entry-level positions to directors, affecting various departments including factory workers, software developers, and robotics engineers. This development was unveiled in a Worker Adjustment and Retraining Notification (WARN) Act filing acquired by CNBC through a public records request.

With Tesla facing challenges stemming from a combination of declining demand for its electric vehicles and heightened competition in the market, the company has been progressively downsizing its global workforce since January. CEO Elon Musk had previously announced plans to reduce over 10% of the company's employees globally, which amounted to 140,473 individuals at the end of 2023.

The restructuring efforts have seen job cuts not only in California but also in locations such as Austin, Texas, and Buffalo, New York. Musk emphasized during Tesla's quarterly earnings call that the company had accumulated a notable "inefficiency" over the years, hinting that the ongoing layoffs might impact a larger number of employees than initially indicated by the 10% reduction target.

Specifically, the WARN filing outlined 378 job eliminations in Fremont, Tesla's initial U.S. manufacturing site, with reductions affecting vehicle assembly operations and staffing. Palo Alto, the company's engineering hub, witnessed the departure of 233 employees, including directors of technical programs.

Moreover, Tesla has let go of a significant portion of its workforce involved in app design, affecting both customer-facing and internal applications. The company's struggles with reduced demand for certain vehicle models coupled with escalating competition have led to revenue declines and stock price setbacks, creating additional pressures on its operations.

As Tesla navigates these challenges and strives to enhance its market position, recent organizational changes include the termination of the team responsible for expanding the Supercharger network in the U.S. Notably, despite these adjustments, Tesla remains committed to optimizing its charging infrastructure to meet growing customer needs and ensure operational efficiency.

In conclusion, Tesla's proactive measures to realign its workforce and strategic focus underscore its dedication to adapting to market dynamics and positioning itself for sustained success in the rapidly evolving electric vehicle landscape.

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