ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Tesla To Lay Off 285 Workers In Buffalo As Part Of Its Global Restructuring Plan

The layoffs come after Tesla announced to lay off 10% of its global workforce.
PUBLISHED APR 18, 2024
A Tesla Model S car is displayed at a Tesla showroom | Getty Images | Photo by Justin Sullivan
A Tesla Model S car is displayed at a Tesla showroom | Getty Images | Photo by Justin Sullivan

EV automaker Tesla is set to lay off 285 employees or 14% of its workforce in Buffalo, New York as part of a broader restructuring plan. According to a WARN notice filed in the state on Wednesday, the company said the layoffs necessited due to "economic" reasons would start from July 15. The two impacted sites have about 2,032 employees, according to Reuters. Most of the affected workers served at the factory while a handful worked at a store and service center in the area.



 

The notice was issued under the Worker Adjustment and Retraining Notification (WARN) Act under which employers are required to provide a 60-day notice to workers before layoffs.

The news comes after Tesla announced that it would lay off about 10% of its global workforce. Citing an internal memo, Reuters earlier reported that the company was facing pressure from falling sales and price war for EVs. Tesla’s global workforce totaled around 140,000 employees at the end of 2023.

So far, few details have been shared by the company or CEO Elon Musk about the layoffs. However, in the memo, Musk said the layoffs would help, “prepare the company” for the “next phase of growth.”

 Elon Musk, Chairman, CEO of Tesla Motors, addresses a press conference | Getty Images | Photo by VCG/VCG
Elon Musk, Chairman, CEO of Tesla Motors, addresses a press conference | Getty Images | Photo by VCG/VCG

Earlier this month, Reuters reported that Tesla has scrapped its plan to make an affordable EV that would cost about $25,000. The company is shifting its strategy to focus on its robotaxi development, Musk appeared to confirm that in a post on X.



 

On the other hand, Musk hasn’t said anything on whether Tesla will stick with his 2023 “master plan,” which laid out a path to reach a sustainable global energy economy through end-use electrification. However, on the 10% workforce layoffs, and the departure of two senior leaders, Drew Baglino and Rohan Patel, Musk did comment that it was part of the restructuring efforts.  

"About every five years, we need to reorganize and streamline the company for the next phase of growth," Musk said on Twitter.



 

Baglino served as the battery development chief while Pater was the vice president for public policy. Their departure also drew posts of thanks from Musk while sparking concerns among investors.

However, shareholders and the board of Tesla seem to have full faith in Musk and his leadership. In a proxy filing out on Wednesday, the shareholders of Tesla made a request to approve a CEO pay package for Musk that’s equivalent to the record compensation plan which was granted to him in 2018.

The plan worth $56 billion was voided in a ruling by Delaware chancery court judge who stated decided that, as CEO, Musk controlled Tesla, and the board’s compensation committee wasn’t independent.



 

Last year in February, the EV maker laid off about 4% of the employees in the Autopilot labeling team in Buffalo as part of a performance review cycle which is conducted every six months.



 

The last big round of job cuts at Tesla was announced in 2022, after Musk told executives he had a "super bad feeling" about the economy. Despite the layoffs in this period, the company’s headcount rose from about 100,000 in late 2021 to over 140,000in late 2023, according to filings with U.S. regulators.

MORE ON MARKET REALIST
One can imagine how hilarious it was when the two iconic hosts shared the stage.
4 hours ago
Gwendolyn Osborne said that Carey changed the history of television and set a new standard.
6 hours ago
The player brought his parents on the stage and that made things even more emotionally charged.
7 hours ago
The player did lose everything that he had won but also get another shot and made a stunning recovery.
1 day ago
Steve Harvey has previously shared style tips with fans in a behind the scenes clip.
1 day ago
The founders of "The Long Hairs" made a rocking pitch that had the sharks headbanging.
2 days ago
The family watched the show as a way to help their son learn problem solving skills from the games.
2 days ago
Jonathan Deiersing pitched his innovative men’s padded underwear line, "Rounder Bum" in the Tank.
2 days ago
Drew Carey is talented in a lot of ways and contestants also bring their unique skills on the stage sometimes.
2 days ago
Seacrest was so astonished that he had to test the contestant's strength right then and there.
3 days ago
Drew Carey is quite a sensation when it comes to performing viral dance trends.
3 days ago
The guest initially expected her grandmother's painting to be worth a couple hundred dollars.
3 days ago
The creators of the show apparently went too far with the joke but tried to make up for it too.
4 days ago
The TikTok creator claimed that the recalled products are widely used by low-income and middle-class families.
4 days ago
The star was stopped midway by his partner while fans loved the look.
4 days ago
Viewers couldn't believe what they saw and some even suggested it could be a prank.
4 days ago
Cuban offered the entrepreneur a "geek to geek" offer that he couldn't refuse.
4 days ago
Reports suggest that the anti-theft measures are causing hostility between shoppers and workers.
5 days ago
Seemed like inflation has been eating into the nuggets sold by Walmart under Great Value.
5 days ago
The entrepreneur shared that it was a habit of his to reward the people who worked hard for him.
6 days ago