As part of\u00a0Tesla\u2019s\u00a0massive restructuring, the electric-vehicle maker notified the California Employment Development Department this week that it\u2019s cutting approximately 600 more employees at its manufacturing facilities and engineering offices between Fremont and Palo Alto.<\/p>\n
The latest round of layoffs eliminated roles across the board \u2014 from entry-level positions to directors \u2014 and hit an array of departments, impacting factory workers, software developers and robotics engineers.<\/p>\n
The cuts were reported in a Worker Adjustment and Retraining Notification, or WARN, Act filing that CNBC obtained through a public records request.<\/p>\n
Facing both weakening demand for Tesla electric vehicles and increased competition, the company has been slashing its headcount since at least January. CEO\u00a0Elon Musk\u00a0told employees in a memo in April that the company would cut more than 10% of its global workforce, which totaled 140,473 employees at the end of 2023.<\/p>\n
Previous filings revealed that Tesla would cut more than 6,300 jobs across California;\u00a0Austin, Texas; and\u00a0Buffalo, New York.<\/p>\n
Musk said on Tesla\u2019s quarterly\u00a0earnings\u00a0call on April 23 that the company had built up a 25% to 30% \u201cinefficiency\u201d over the past several years, implying the layoffs underway could impact tens of thousands more employees than the 10% number would suggest.<\/p>\n
According to the WARN filing, the 378 job cuts in Fremont, home to Tesla\u2019s first U.S. manufacturing plant, included people involved in staffing and running vehicle assembly. There were 65 cuts at the company\u2019s Kato Rd. battery development center.<\/p>\n
Tesla didn\u2019t respond to a request for comment.<\/p>\n
Among the highest-level roles eliminated in Fremont were an environmental health and safety director and a user experience design director.<\/p>\n
In Palo Alto, home to the company\u2019s engineering headquarters, 233 more employees, including two directors of technical programs, lost their jobs.<\/p>\n
Tesla has also terminated a majority of employees involved in designing and improving apps made for customers and employees, according to two former employees directly familiar with the matter. The WARN filing shows that to be the case, with many cut from the team at Tesla\u2019s Hanover Street location in Palo Alto.<\/p>\n
Tesla faces reduced demand for cars it makes in Fremont, including its older Model S and X vehicles and Model 3 sedan. Total deliveries dropped in the first quarter from a year earlier, and Tesla reported its steepest year-over-year revenue decline since 2012.<\/p>\n
An onslaught of competition, especially in China, has continued to pressure Tesla\u2019s sales in the second quarter. Xiaomi and Nio have each launched new EV models, which undercut the price of Tesla\u2019s most popular vehicles.<\/p>\n
Tesla\u2019s stock price has tumbled about 30% so far this year, while the S&P 500 is up 11%.<\/p>\n
Musk has been trying to\u00a0convince investors\u00a0not to focus on vehicle sales and instead to back Tesla\u2019s potential to finally deliver self-driving software, a robotaxi, and a \u201csentient\u201d humanoid robot. Musk and Tesla have long promised customers self-driving software that would turn their existing EVs into robotaxis, but the company\u2019s systems still require constant human supervision.<\/p>\n
Other\u00a0recent job cuts\u00a0at Tesla included the team responsible for building out the Supercharger, or electric-vehicle fast-charging network, in the U.S.<\/p>\n
Tesla disclosed plans in its annual\u00a0filing\u00a0for 2023 to grow and optimize its charging infrastructure \u201cto ensure cost effectiveness and customer satisfaction.\u201d Tesla said in the filing that it needed to expand its \u201cnetwork in order to ensure adequate availability to meet customer demands,\u201d after other auto companies announced plans to adopt the North American Charging Standard.<\/p>\n
Since cutting most of its Supercharger team, Tesla has\u00a0reportedly\u00a0started to rehire at least some members, a move reminiscent of the job cuts Musk made at Twitter after he bought the company and later rebranded it as X. Musk told CNBC\u2019s David Faber last year that he wanted to\u00a0rehire\u00a0some of those he let go.<\/p>\n
Read the latest<\/strong>\u00a0WARN filing<\/strong>\u00a0in California here<\/strong><\/p>\n<\/p>\n As part of\u00a0Tesla\u2019s\u00a0massive restructuring, the electric-vehicle maker notified the California Employment Development Department this week that it\u2019s cutting approximately 600 more employees at its manufacturing facilities and engineering offices between Fremont and Palo Alto. The latest round of layoffs eliminated roles across the board \u2014 from entry-level positions to directors \u2014 and hit an array […]<\/p>\n","protected":false},"author":0,"featured_media":4540,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/4539","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=4539"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/4539\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/4540"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=4539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=4539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=4539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}