Tesla recently announced layoffs affecting nearly 700 employees at its manufacturing site in Sparks, near Reno. The layoff notice, filed on April 19 and disclosed by the state of Nevada this week, revealed plans to let go of 693 workers by June 14.
Elon Musk, Tesla’s CEO, had informed employees earlier in the month about the company’s intention to downsize by 10% due to disappointing sales in the first quarter. Car sales had declined by 9% compared to the same period last year.
These job cuts are part of a broader restructuring affecting about 14,000 employees out of Tesla’s total workforce of over 140,000. Reports indicate that 3,300 employees in California and 2,700 in Tesla’s Austin factory will also be affected.
In his memo to employees, Musk emphasised the need for cost reductions and increased productivity as vital steps for Tesla’s future growth.
The Gigafactory Nevada
Tesla hasn’t responded to inquiries about the recent layoffs. The Gigafactory Nevada, known for producing lithium-ion batteries and electric vehicle components, employs around 12,000 people since its opening in 2016. Tesla’s presence significantly impacted Northern Nevada’s economy, with promises of a $3.6 billion investment following a $330 million tax abatement in 2023.
Tesla has faced challenges lately, including a recall of 3,878 2024 Cybertrucks due to a potential issue with the accelerator pedal causing unintended acceleration. Additionally, the company recently slashed prices by $2,000 on three car models: the Model Y, X, and S.
Comments 1