Tesla Set To Cut Nearly 700 Jobs In Nevada After Layoffs In California, New York, Texas

Tesla is set to lay off 693 employees at its facilities in Sparks, Nevada, according to a government notice submitted by the company. The layoffs reportedly come as part of its plan to cut over 10% of its global workforce amid dropping demand and rising competition. As per Reuters, the layoffs have an effective date of June 14, 2024, which is in line with the company’s previous layoffs that happened in Buffalo, New York.

This is the biggest layoff for Nevada so far in 2024, trailing behind the closure of Tropicana Las Vegas in which 744 workers were laid off on April 2. Tesla’s notice was submitted to the Nevada Department of Employment, Training, and Rehabilitation earlier this week under the WARN Act which requires companies laying off 100 or more employees to notify authorities 60 days in advance. Tesla is one of the largest economic contributors to Northern Nevada. Last year, it promised to invest $3.6 billion in the region to expand its operations after the state's government granted a tax abatement of $330 million. The timing of the layoff announcement also coincides with the company’s decision to cut prices by $2,000 for three of its five models sold in the U.S., as per 8NewsNow.

Recent layoffs from Tesla

Earlier this month, Tesla announced that it will lay off 6,020 employees in Texas and California ahead of its quarterly results. In the first quarter of 2024, Tesla’s net income plummetted 55% and revenue was down 9% from last year, marking its biggest drop since 2012, per CNBC. CEO Elon Musk addressed the setback and emphasized the company's focus switch to “accelerate” production of new cheaper vehicles.

Meanwhile, some numbers were released regarding the job cuts under the WARN notice. As per Reuters, Tesla is cutting 3,332 jobs in California and about 2,688 positions will be cut in Texas, starting June 14, the same effective date as Nevada.

Tesla had also cut 14% or 285 jobs in Buffalo, New York as part of the broader restructuring plan. Reuters reported that the company had cited "economic" reasons behind the layoffs and set the effective date as July 15, per the WARN notice. The two impacted sites have about 2,032 employees, and most of the affected workers served at the factory while a handful worked at a store and service center.

Tesla’s plan to cut 10% of its global workforce

At the start of this month, Tesla announced that it would lay off about 10% of its global workforce. According to an internal memo, the company was facing pressure from falling sales and price wars for EVs due to which it had to take aggressive cost-cutting measures.

Meanwhile, few details have been shared by the company or CEO Elon Musk regarding the layoffs apart from sparse statements and occasional Twitter replies. In the memo notifying the layoffs, Musk reportedly said, “It is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” per the New York Times.

The world's largest vehicle maker by market value had 140,473 employees globally as of December 2023, as per its annual report, Thus, the plan is likely to impact at least 14,000 workers across the world.