Tesla is set to reduce its workforce significantly in both Texas and California, impacting over 6,000 employees as the company navigates through a challenging phase of slowing demand and decreased profit margins. This announcement precedes the electric vehicle manufacturer's quarterly financial results, during which CEO Elon Musk is expected to present a strategic plan for the company.
The job reductions will affect approximately 2,688 employees at the Tesla factory in Austin, Texas, and 3,332 employees in California. These layoffs are scheduled to commence on June 14, according to recent disclosures made to the respective state governments under the Worker Adjustment and Retraining Notification (WARN) Act.