Tesla to Cut 693 Jobs in Nevada Amid Restructuring Efforts

Tesla layoffs: Elon Musk’s Tesla is set to lay off 693 workers at its facilities in Sparks, Nevada, as part of an initiative to cut more than 10 percent of its global workforce due to falling sales and increasing competition, a government notice revealed. Saturday, news agency Reuters reported.

The notice was submitted earlier this week to the Nevada Department of Employment, Training and Rehabilitation, which is mandated by US labor law. According to the report, the law requires companies with 100 or more employees to notify authorities 60 days in advance of planned closures or significant layoffs.

The announcement follows Tesla’s recent significant layoffs in Texas and California, which affected 6,020 employees. These actions are part of a broader cost-cutting initiative aimed at adjusting to evolving market dynamics in the electric car industry. Tesla employs more than 140,000 individuals worldwide by the end of 2023, with current layoffs reportedly making up a significant percentage of its workforce. Recent reports have also indicated that the CEO, Elon Musk, has advocated more significant layoffs at Tesla, possibly amounting to 20 percent job cuts, which could result in the elimination of more than 20,000 positions at the company.

“As we prepare the company for our next phase of growth, it is extremely important to address every aspect of the company to reduce costs and increase productivity. As part of this effort, we conducted a thorough review of the organization and made the difficult decision to reduce our headcount globally by more than 10 percent. I don’t hate more, but it has to happen,” the Tesla CEO reported. Meanwhile, EV maker Tesla responded to declining sales and rising inventories by announcing price cuts for its electric vehicles in both China and the US effective April 21. These strategic adjustments target two of the automaker’s most critical markets and follow a disappointing first quarter. Reported by Bloomberg