Tesla has revealed plans to lay off 6,020 employees in Texas and California as part of its strategy to address declining demand and decreasing margins. The announcement comes just ahead of the company's quarterly results, expected to be outlined by CEO Elon Musk on Tuesday.
Last week, Tesla announced a reduction of more than 10% in its global workforce, citing pressure from decreasing sales and intensifying competition among electric vehicle (EV) manufacturers. However, the exact number of affected employees was not disclosed at the time.
Details of the layoffs emerged through notifications to the states of Texas and California on Monday, in compliance with US labour laws mandating notification of planned closings or mass layoffs at least 60 days in advance for companies with 100 or more employees.
According to the notices, Tesla will cut 3,332 jobs in California and 2,688 positions in Texas, with the layoffs set to begin on June 14.
CEO Elon Musk took to social media platform X to highlight Tesla's overall job creation, stating, "Tesla has now created over 30,000 manufacturing jobs in California!"
Ahead of the release of its first-quarter results, Tesla's stock, based in Austin, Texas, saw a rise of approximately 2%, breaking a seven-session losing streak that had previously seen the stock decline by 19%.
The layoffs in Texas account for 12% of Tesla's workforce in the greater Austin area, where the company's gigafactory and headquarters are located.
The global job cuts will also impact 285 employees at Tesla's Buffalo, New York facility, which houses the labelling team for its Autopilot driver assistance software.
Tesla's headcount stood at over 140,000 at the end of last year, up from around 100,000 in 2021, according to filings with US regulators.