The layoffs would take effect from June 20. This decision directly affects the company's facilities in Palo Alto and Fremont, which are vital to Tesla’s operations.
Palo Alto is one of Tesla's main engineering and manufacturing centers. It designs and builds powertrain equipment and serves as the engineering headquarters for the entire brand. The Freemont factory is a full-time production facility with five assembly lines. Tesla builds every model on sale today except the Cybertruck there. Simply put, these locations are critical to the success of the brand.
Tesla's ongoing layoffs are part of a broader strategy to reduce its global workforce by 10 percent; so far, reaching approximately halfway through its goal with more than 5,989 employees laid off this year. These cuts come as Tesla has already reduced its workforce substantially in the Bay Area and Texas earlier this year.
In response to significant drops in revenue and profits in Q1 of 2024, the influential electric car maker declared that these drastic measures aim to reduce overhead costs and improve efficiency. Despite these significant economic pressures, Tesla has rehired previous employees for their Supercharger team.
The first set of layoffs affecting Bay Area employees will begin on June 14, the second on June 20, and each will take about two weeks to fully implement. It's unclear when employees will find out they're on the chopping block, but some may already know.
Source: SFChronicle
