Retrenchments part of massive layoffs hitting 10% of workforce
Tesla is laying off more than 6,000 employees in the states of Texas and California, according to reports.
Reuters reported that 3,332 jobs will be eliminated in California, while 2,688 roles will be cut in Texas starting June 14.
The numbers were disclosed through submissions made by Tesla in compliance with labour laws that mandate organisations with over 100 employees notify the government 60 days ahead of mass layoffs.
The layoffs are believed to be a part of the global retrenchments previously announced by Tesla, which is expected to impact more than 10% of its over 140,000 employees.
Tesla CEO Elon Musk said there have been duplications of roles and job functions in certain areas of the organisation after it grew rapidly with multiple factories around the world.
"I would like to thank everyone who is departing Tesla for their hard work over the years. I'm deeply grateful for your many contributions to our mission and we wish you well in your future opportunities. It is very difficult to say goodbye," Musk told affected staff in a previous memo.
Tesla officially opened its Texas EV and battery factory in April 2022, and now manufactures some of its Model Y crossover utility vehicles in Austin, along with the Cybertruck. But Musk later called the Austin factory, and another assembly plant in Germany, “gigantic money furnaces,” according to CNBC.
The Tesla CEO also had to issue an apology less than two weeks after making the layoff announcement after they found that some severance packages granted to laid off staff were "incorrectly low."
"My apologies for this mistake. It is being corrected immediately," he said.
Musk said Tesla is now preparing for its "next phase of growth" and cited the development of the "most revolutionary technologies in auto, energy, and artificial intelligence."
"As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there," he told staff.
