Tesla cutting around 2,700 jobs in Austin and more than 3,300 in California as part of broad restructuring

Tesla
is
eliminating
3,332
jobs
across
the
state
of
California,
and
2,688
jobs
in
Austin,
Texas,
according
to
Worker
Adjustment
and
Retraining
Notification
(WARN)
Act
letters
and
notices
filed
in
both
states.

The
layoffs
are
part
of
a
broader
restructuring
that
the
electric
vehicle
maker
announced
last
week.

In
2021,
Tesla
CEO

Elon
Musk
moved
the
company’s

corporate
headquarters
to
Austin
from
Palo
Alto,
California.

Musk
said
in
an
internal
memo
last
week
that
Tesla
was

cutting
more
than
10%
of
its
global
headcount
as
the
EV
maker
reckons
with
flagging
sales
and
increased
competition.
He
did
not
say
which
departments
or
locations
would
be
most
affected.

“As
we
prepare
the
company
for
our
next
phase
of
growth,
it
is
extremely
important
to
look
at
every
aspect
of
the
company
for
cost
reductions
and
increasing
productivity,”
he
wrote.
A
subsequent
WARN
notice
filed
in
New
York
indicated
that
285
positions
were
being
eliminated
at
a
factory
in

Buffalo.

Tesla employed
140,473
people
total
as
of
December
2023,
according
to
filings.

Tesla
officially
opened
its
Texas
EV
and
battery
factory
in
April
2022,
with
a “cyber
rodeo”
party.
The
company
now
manufactures
some
of
its
Model
Y
crossover
utility
vehicles
in
Austin,
and
has
started
to
build
its
Cybertruck
there.

Musk
later
called
the
Austin
factory,
and
another
assembly
plant
in
Germany, “gigantic
money
furnaces,”
in
an
interview
with
Tesla
Owners
Silicon
Valley,
a
fan
club
that
promotes
Tesla
vehicles.

According
to
filings
with
the
Texas
Department
of
Licensing
and
Regulation,
Tesla
was
planning
to
spend
upward
of
$770
million
last
year
on
the
construction
of
expanded
facilities
in
Austin,
including
for
battery cell
testing and manufacturing, cathode and drive
unit manufacturing,
plus
a
die
shop,
among
other
things.

Tuesday’s
WARN
filings
said, “none
of
the
employees
are
represented
by
a
union
and
none
of
the
employees
have
bumping
rights,”
or
the
right
of
more
senior
workers
to
replace
those
with
less
seniority.

The
layoffs
in
California
included
2,266
people
in
Fremont,
which
is
home
to
Tesla’s
first
U.S.
vehicle
assembly
plant,
and
486
employees
in
Palo
Alto,
home
to
Tesla’s
engineering
headquarters.
The
cuts
affected
workers
at
the
company’s
factories,
engineering
offices,
stores,
showrooms
and
service
centers
across
the
state.

Jobs
were
also
cut
in
Burbank
and
Lathrop,
where
Tesla
makes
spare
parts
at
a
foundry
and
assembles
Megapack,
battery
energy
storage
systems.

Executives
are
expected
to
discuss
the
restructuring
on
the
company’s

quarterly
earnings
call
at
5:30
p.m.
ET.