as part of Tesla’s In a major restructuring, the electric vehicle maker notified the California Employment Development Department this week that it will cut about 600 additional employees at its manufacturing facilities and engineering offices between Fremont and Palo Alto.
The latest round of job cuts hit a range of sectors, with roles ranging from entry-level positions to directorships wiped out, affecting factory workers, software developers and roboticists.
The layoffs were reported in Worker Adjustment and Retraining Notification (WARN) Act filings obtained by CNBC through a public records request.
Faced with both declining demand for Tesla electric vehicles and increasing competition, the company has been cutting jobs since at least January. CEO Elon Musk told employees in an April memo that the company would cut more than 10% of its global workforce of 140,473 by the end of 2023.
Previous filings revealed that Tesla will cut more than 6,300 jobs across California. Austin, Texas. and Buffalo, New York.
Musk said during Tesla’s quarterly earnings call on April 23 that the company has accumulated 25% to 30% “inefficiency” over the past few years, and that the 10% ongoing layoffs suggest It also suggested that tens of thousands of employees could be affected.
The 378 job cuts at Tesla’s first U.S. manufacturing plant in Fremont included those involved in staffing and vehicle assembly operations, according to WARN’s filing. There were 65 cuts on the company’s Kato Road. Battery development center.
Tesla did not respond to a request for comment.
Among the top-level roles eliminated at Fremont were two environmental health and safety directors and a user experience design director.
Another 233 employees lost their jobs in Palo Alto, where the company’s engineering headquarters are located, including two directors of technical programs.
Tesla also laid off most of its employees who designed and improved apps made for customers and employees, according to two former employees with direct knowledge of the matter. The WARN filing shows that’s the case, with many jobs being cut from the team at Tesla’s Hanover Street location in Palo Alto.
Tesla is facing declining demand for the cars it makes in Fremont, including the older Model S and X and Model 3 sedans. Total deliveries in the first quarter were down year-over-year, with Tesla reporting its largest year-over-year sales decline since 2012.
Increasing competition, especially in China, continued to pressure Tesla’s sales in the second quarter. Xiaomi and Nio have each launched new EV models that reduce the price of Tesla’s most popular vehicles.
Tesla stock has fallen about 30% since the beginning of the year, while the S&P 500 is up 11%.
Musk persuades investors to back Tesla’s potential to eventually deliver self-driving software, robotaxis and ‘sentient’ humanoid robots rather than focus on selling cars I’ve been trying. Musk and Tesla have long promised to provide customers with self-driving software that turns existing EVs into robotaxis, but the company’s systems still require constant human oversight.
other Recent staff cuts Tesla included a team responsible for building Superchargers, or fast-charging networks for electric vehicles, in the United States.
Tesla revealed its plans in its annual report filing Looking ahead to 2023, it aims to grow and optimize its charging infrastructure “to ensure cost-effectiveness and customer satisfaction.” Tesla said in its filing that it will need to expand its “network to ensure adequate availability to meet customer demand,” as other car companies have announced plans to adopt the North American charging standard. said.
Since cutting most of its Supercharger team, Tesla has reportedly It’s a move reminiscent of the layoffs Musk made after buying Twitter, which he later rebranded to Company X, and last year, Musk told CNBC’s David Faber how many members he let go. He said he would like to rehire him.
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