Tesla Layoffs: Elon Musk's Firm To Sack Nearly 2,700 Jobs In Texas Factory
Tesla Layoffs: Like many companies, Tesla has been grappling with declining sales and intensified price competition.
Elon Musk’s Tesla reportedly announced in a Worker Adjustment and Retraining Notification (WARN) notice on Monday that it will lay off 2,688 employees at its Texas factory as part of its ongoing layoffs. This notice adheres to the WARN Act, a US labour law mandating that companies with 100 or more employees provide a 60-day notice before planned closings or mass layoffs.
Like many companies, Tesla has been grappling with declining sales and intensified price competition. These factors have necessitated another round of layoffs, reducing its workforce by over 10 per cent. This global restructuring effort also includes 285 job cuts in Buffalo, New York. The notice from Tesla specified that the layoffs will begin on June 14th, a decision made in response to the company's current market challenges.
Media reports previously claimed that the EV maker is laying off a recently formed marketing department as part of broader company-wide layoffs. This move signifies a shift from the traditional advertising approach that CEO Elon Musk had endorsed less than a year ago. The entire US "growth content" team, comprising about 40 employees overseen by senior manager Alex Ingram, was reportedly laid off, as per a Bloomberg report citing sources. The layoffs included Ingram and Jorge Milburn, who led the global team. Additionally, the company maintains a small marketing team in Europe, according to the report.
These Tesla layoffs are a significant indication of the company's largest workforce reduction yet, as announced by Musk last week, impacting over 10 per cent of the global workforce. Recent reports indicate that the CEO has pushed for an even more significant reduction of up to 20 per cent, potentially leading to the elimination of over 20,000 positions.
The Tesla CEO has reportedly said: "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. As part of this effort, we've done a thorough review of the organisation and made the difficult decision to reduce our headcount by more than 10 per cent globally. There is nothing I hate more, but it must be done."
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