Tesla has notified the California Employment Development Department that it is cutting approximately 600 more jobs at its manufacturing facilities and engineering offices, primarily located between Fremont and Palo Alto. This latest round of layoffs, which affects a range of positions from entry-level workers to directors, impacts factory workers, software developers, and robotics engineers.
This announcement comes through a Worker Adjustment and Retraining Notification (WARN) Act filing.
Tesla has faced growing challenges, including weakened demand for its electric vehicles and intensified competition. CEO Elon Musk previously stated in a memo that the company plans to cut over 10% of its global workforce, which numbered 140,473 employees at the end of 2023.
The job cuts follow earlier WARN filings revealing that Tesla intends to eliminate more than 6,300 jobs across California, Austin, Texas, and Buffalo, New York. In Fremont, which houses Tesla’s first U.S. manufacturing plant, 378 positions were eliminated, including personnel responsible for vehicle assembly. Additionally, 65 jobs were cut at the Kato Rd. battery development center.
Among those affected in Fremont were two environmental health and safety directors and a user experience design director. The layoffs extended to Palo Alto, where 233 employees lost their jobs, including two directors of technical programs. The WARN filing also indicated significant cuts to the team responsible for developing apps for customers and employees.
As Tesla’s vehicle deliveries have declined, the company reported its steepest year-over-year revenue drop since 2012. The competition has intensified, especially from companies like Xiaomi and Nio, which have launched new EV models at competitive prices.
Tesla’s stock has fallen about 30% this year, in contrast to the S&P 500’s 11% increase. While Musk tries to shift investor focus to Tesla’s potential advancements in self-driving technology, the company’s vehicles still require constant human supervision.
Despite the layoffs, reports suggest that Tesla may be rehiring some members of its Supercharger team after previously cutting most of its staff. This echoes Musk’s approach at Twitter, where he also made significant job cuts before later reinstating some employees.