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600 job cuts in California as Tesla layoffs persist

As part of Tesla’s massive restructuring, the electric-vehicle maker notified the California Employment Development Department this week that it’s cutting approximately 600 more employees at its manufacturing facilities and engineering offices between Fremont and Palo Alto. The latest round of layoffs eliminated roles across the board — from entry-level positions to directors — and hit an array of departments, impacting factory workers, software developers, and robotics engineers. The cuts were reported in a Worker Adjustment and Retraining Notification, or WARN, Act filing that was obtained through a public records request.

Previous filings revealed that Tesla would cut more than 6,300 jobs across California; Austin, Texas; and Buffalo, New York. The CEO, Elon Musk, stated in April that the company would cut more than 10% of its global workforce, which totaled 140,473 employees at the end of 2023. Musk mentioned during Tesla’s quarterly earnings call on April 23 that the company had built up a 25% to 30% “inefficiency” over the past several years.

Among the highest-level roles eliminated in Fremont were an environmental health and safety director and a user experience design director. In Palo Alto, home to the company’s engineering headquarters, 233 more employees, including two directors of technical programs, lost their jobs. Tesla has also terminated a majority of employees involved in designing and improving apps made for customers and employees.

The latest WARN filing shows that the 378 job cuts in Fremont, included people involved in staffing and running vehicle assembly. There were 65 cuts at the company’s Kato Rd. battery development center. Tesla faces reduced demand for cars it makes in Fremont, including its older Model S and X vehicles and the Model 3 sedan. Total deliveries dropped in the first quarter from a year earlier, and Tesla reported its steepest year-over-year revenue decline since 2012.

Tesla disclosed plans in its annual filing for 2023 to grow and optimize its charging infrastructure “to ensure cost-effectiveness and customer satisfaction.” Since cutting most of its Supercharger team, Tesla has reportedly started to rehire at least some members, a move reminiscent of the job cuts Musk made at Twitter after he bought the company and later rebranded it as X.

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