Tesla is undergoing further layoffs in the U.S. and seeking voluntary departures in Germany as part of its effort to reduce its workforce worldwide by over 10 percent. The layoffs were discovered through the U.S. Worker Adjustment and Retraining Notification (WARN) Act and are set to take place at Gigafactory Texas, Giga New York, and Giga Berlin. The company is also facing executive departures, including the Senior Vice President of Powertrain and Energy Engineering and its Vice President of Public Policy and Business Development.
The WARN notice filed by Tesla outlined plans to lay off a total of 2,688 workers at Giga Texas starting on June 14. Another notice detailed layoffs of 285 workers at Giga New York. In addition to the job cuts in the U.S., Tesla announced plans to cut 400 jobs at Giga Berlin, but is aiming to do so through a voluntary program. These layoffs come as Tesla prepares for its Q1 earnings report and considers ways to streamline its operations and reduce costs amid market challenges.
At Giga Berlin, Tesla is currently in talks with its works council regarding the job cuts and the impact on its workforce. The automaker stated that the weakening sales market for electric cars is presenting challenges, and it is striving to operate its production as efficiently as possible. The Economic Minister of the state of Brandenburg described the job cuts as relatively moderate, given Tesla’s goal of trimming its global workforce. The news of the layoffs at Giga Berlin follows recent reports that Tesla would be cutting as many as 3,000 workers at the site, which the company has refuted.
Despite the ongoing layoffs and departures, Tesla CEO Elon Musk has explained that the company’s strategy behind the layoffs is necessary for long-term success and growth. The company is focusing on optimizing its operations and reducing costs to remain competitive in the electric vehicle market. As Tesla continues to navigate market challenges and workforce reductions, it is seeking to find a balance between operational efficiency and maintaining a skilled workforce.Overall, the job cuts in the U.S. and Germany are part of Tesla’s broader effort to realign its workforce and streamline its operations in response to market dynamics and internal restructuring.
