Tesla Troubles Lead to Cuts of 600 Jobs in Bay Area

Karen Garcia
Los Angeles Times
(TNS)

In the fifth straight week of layoff announcements, Tesla said it is now concentrating on reducing staff at its Bay Area facilities as part of a larger move to cut jobs globally.

State filings show that Tesla is planning to lay off 378 employees at its Fremont, California, facilities and 233 at its Palo Alto offices.

The layoffs will occur over a 14-day period starting June 20.

An email to Tesla officials requesting comment was not immediately returned.

The layoffs come as the company struggles with flagging sales, top executives fleeing, a declining stock price and quality problems with the new Cybertruck. The low-cost Model 2 recently promised by Chief Executive Elon Musk also appears to be dead.

It is not immediately clear which positions are being cut. The San Francisco Chronicle reported they would include technicians, electricians, software engineers, plumbers and athletic trainers.

Before this latest round, Telsa in April announced 3,332 layoffs at its facilities and offices in Fremont, Palo Alto, Burbank and Lathrop.

Earlier that month, Musk had announced in an email to staff that Tesla was laying off more than 10% of its workforce, citing job overlap and the needs to reduce costs.

“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Musk wrote.

“As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally,” he continued. “There is nothing I hate more, but it must be done.”

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