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Tesla has announced plans to lay off 6,020 employees in Texas and California to address declining demand and shrinking profit margins.
Last week, Tesla announced that it would lay off more than 10 percent of its global workforce, citing pressure from declining sales and increased competition among electric vehicle (EV) manufacturers. However, the exact number of affected employees was not initially disclosed.
Chief Financial Officer Vaibhav Taneja said that the job cuts will save the EV company at least $1 billion annually in costs. Taneja also said that Tesla plans to “accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025. The new vehicles will include more affordable models.”
Details of the layoffs emerged through notifications to the states of Texas and California on Monday. The notifications comply with US labor laws requiring advance notification of planned closings or mass layoffs for companies with 100 or more employees.
According to the notices, Tesla will cut 3,332 jobs in California and 2,688 positions in Texas, with the layoffs scheduled to start on June 14.
CEO Elon Musk used the social media platform X to underscore Tesla’s overall job creation, stating, “Tesla has now created over 30,000 manufacturing jobs in California!”
Before releasing its first-quarter results, Tesla’s stock, headquartered in Austin, Texas, increased by 2%, breaking a seven-session losing streak that had previously resulted in a 19% decline.
The job cuts in Texas represent 12% of Tesla’s total workforce of 22,777 in the greater Austin area, where its Gigafactory and headquarters are located.
The global job cuts will also affect 285 employees at Tesla’s Buffalo, New York, facility, which houses the labeling team for its Autopilot driver assistance software.
According to filings with US regulators, Tesla’s headcount stood at over 140,000 at the end of last year, up from around 100,000 in 2021.
