Tesla to Lay Off 2,700 in Austin, Over 3,300 in California Under Restructuring Scheme

Tesla Inc. is not yet done with job cuts this year. It was reported that it would axe an additional 2,700 in Austin, Texas, and more than 3,300 in California.

Tesla's Restructuring and WARN Notice

The workforce reduction is reportedly part of Tesla's broad restructuring scheme, which was announced last week. The new layoffs were revealed in a recent filing for the Worker Adjustment and Retraining Notification (WARN) Act notice in the affected states.

Likewise, CarScoops mentioned that informing the local government about employee dismissal plans is mandatory. Tesla is complying with the labor law that requires companies with over 99 staff to give 60 days' notice for large-scale job terminations. The layoffs in Austin are expected to begin on June 14.

Transfer of Tesla's HQ to Texas

The restructuring and workforce reduction come as Tesla transferred its corporate headquarters to Austin from Palo Alto, California. At any rate, the EV maker's chief, Elon Musk, said via an internal memo last week that the company will trim down its global workforce, citing growing competition and declining sales as the main reasons.

As per CNBC, the CEO did not reveal which business units or locations would be most hit by the planned layoffs. However, for the latest job cuts in California and Texas, reports indicated that workers in Tesla's production plants, showrooms, engineering offices, stores, and service centers are set to lose their jobs.

"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," Musk said in the previous memo. Finally, the layoffs will decrease Tesla's global headcount, totaling 140,473 as of December 2023.

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