Elon Musk’s Tesla , is continuing to lay off workers as the company has slashed an extra 600 jobs across its California services, affecting a wide range of jobs from factory workers to professionals.
According to CNBC, Tesla has been dealing with a number of issues that have resulted in numerous cuts in the last quarter. The latest round of layoffs, reported in a Worker Adjustment and Retraining Notification ( WARN ) Act filing obtained by CNBC, impacted a wide range of positions, from entry- level roles to directors, spanning various departments such as factory workers, software developers, and robotics engineers. This action comes as Tesla struggles to maintain its electric vehicle business and face increased business competition.
Elon Musk, the company’s CEO, had previously stated in a letter from April that it would reduce its global workforce to 140, 473 people by the end of 2023, according to a letter from the company. Before files revealed that Tesla would split over 6, 300 work across California, Austin, Texas, and Buffalo, New York.
Musk made the suggestion during Tesla’s weekly earnings contact on April 23 that the business had developed a 25 to 30 % “inefficiency” over the previous few years, suggesting that the company’s ongoing layoffs could have an impact on tens of thousands of more employees than the company had originally predicted.
The job reductions in Fremont, house to Tesla’s second U. S. fabrication plant, included 378 jobs involved in manpower and running car council, as well as 65 cuts at the bank’s Kato Rd. battery development center. Two environmental health and safety directors and a user experience design director were among the highest-level positions eliminated. In Palo Alto, Tesla’s engineering headquarters, 233 more employees lost their jobs, including two directors of technical programs.
Two former employees claim that Tesla has also fired the majority of its employees who work on creating and improving apps for customers and employees. The team at Tesla’s Hanover Street location in Palo Alto has a lot of cuts coming from the team there, according to the WARN filing.
Tesla’s decision to reduce its workforce comes amid a decline in demand for its more recent Model S and X models as well as the Model 3 sedan. The business reported its first quarter’s steepest year-over-year revenue decline since 2012, with total deliveries falling compared to the previous year.
Increased competition, particularly in China, has continued to pressure Tesla’s sales in the second quarter, with companies like Xiaomi and Nio launching new EV models that undercut the price of Tesla’s most popular vehicles.
Read more at CNBC here.
For Breitbart News, Lucas Nolan is a reporter covering issues involving free speech and online censorship.