- Tesla is cutting around 2,700 jobs at its factory in Austin, Texas, which amounts to about 12% of the workforce there.
- The job cuts are part of a broader restructuring announced by Tesla last week, which aims to reduce costs and increase productivity.
- According to a WARN Act filing, the layoffs affect 2,688 employees at the Austin facility, and none of the affected employees are represented by a union.
Tesla is eliminating around 12% of its workforce at its factory in Austin, Texas as part of a broader restructuring announced last week.
Background
The job cuts affect 2,688 employees at the facility in Travis County. In 2021, Tesla CEO Elon Musk moved the company’s corporate headquarters from Palo Alto, California to Austin.
Musk said in an internal memo last week that Tesla was cutting more than 10% of its global headcount as the electric vehicle maker deals with slowing sales and increased competition. He did not specify which departments or locations would be most impacted.
Austin Factory
Tesla officially opened its Texas EV and battery factory in April 2022 with a cyber rodeo party. The company now manufactures some Model Y crossover SUVs in Austin and has started building its Cybertruck there.
Musk later described the Austin factory as a “gigantic money furnace” in an interview. According to filings, Tesla planned to spend over $770 million last year expanding facilities in Austin.
Details of Layoffs
Tuesday’s WARN filing said none of the employees being laid off are represented by a union or have bumping rights. Executives are expected to discuss the restructuring on the company’s quarterly earnings call.
Conclusion
The layoffs come as Tesla deals with slowing demand, rising costs and increased competition. While the broader restructuring aims to cut costs and boost productivity, it remains to be seen how the job cuts will impact Tesla’s operations in Austin.
