Tesla Lays Off 3300 California Employees Bay Area Hit Hard

Tesla Lays Off 3,300 California Employees, Bay Area Hit Hard

Tesla’s massive layoff is about to shake California’s employment structure. As per the warning filing made with California’s employment department, around 3,300 employees are set to be laid off in June.

At the beginning of April, Elon Mask announced a 10% reduction in Tesla’s workforce.

This is also set to hit the Fremont locations hardest, with 2,267 layoffs, more than 1,400 of which are tied to the company’s massive car factory at 45500 Fremont Blvd.

Following this, Tesla even announced the 515 job losses in Lathrop in the Central Valley, where the company runs a parts distribution center and a Megapack battery factory, followed by 486 layoffs from Pal Alto.

Tesla’s layoffs are turning out to be the most substantial for the Bay Area, followed by the past year’s 1,000 layoffs at Google, Meta, PayPal, and Microsoft.

The job cuts are even hitting the southern region of California, as 515 employees will be laid off across eight locations in Lathrop.

This is followed by a WARN notice to 64 workers who will lose their jobs at Tesla in Burbank, including 30 from a dealership and service center.

The California numbers might be wrenching, but the job cuts were expected since a memo from Musk was published by the news outlet Electrek.

“We have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally,” the CEO told staff, per the outlet.

Musk wrote in the memo, “There is nothing I hate more, but it must be done.”

Tesla, who has eliminated its media relations department, did not choose to mark any comments on the above statements.

Tesla Lay Off 3,300 California Employees, Bay Area Hit Hard
Tesla Lays Off 3300 California Employees Bay Area Hit Hard

On Tuesday, Tesla reported a 9% drop in revenue to $21.3 billion in the first quarter compared to the year 2023.

Moreover, shares were up 5.5% in after-hours trading but declined by more than 41% this year. The shares stats show the biggest decline in this decade, with a down of 42% this year.

Tesla reported an 8.5% year-over-year decline in first-quarter deliveries, marking the first drop decline since 2020.

Earlier this week, the company announced it would abandon its plans for a more cost-effective electric vehicle.

Also, a sudden shift was noticed in the development of robotaxis, on which Elon Mask quoted on his social media platform X: “There were no injuries or accidents because of this.” “We are just being very cautious.”

According to the last week of filings submitted by Tesla to the Securities and Exchange Commission, the layoffs “will prepare Tesla for our next phase of growth, as we are developing some of the most revolutionary technologies in auto, energy and artificial intelligence.”

Last week, Tesla requested its shareholders to approve a huge $56 billion pay package for Musk, to which a musician with nine shares of Tesla stock complained.

The musician argued successfully that Musk alone set the terms of payment and had too much influence over the negotiations, noticing it the Delaware Court decided to decline the package.

About the author

Nancy Beverly

Nancy Beverly is a prominent political journalist and editor at World-Wire, known for her sharp analysis and deep understanding of global politics. With a Master's degree in Political Science, she excels in breaking down complex political issues, making them relatable to the public. At World-Wire, Nancy crafts compelling political narratives covering everything from local governance to international relations. Recognized for her expertise, she received the 'Excellence in Political Journalism' award in 2021. Nancy's work not only informs but also enriches her readers' understanding of political dynamics.

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