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Published on April 23, 2024
Tesla to Slash 2,700 Jobs at Austin Gigafactory Amid Economic Headwinds and Sales SlumpSource: Unsplash/Paul Steuber

Tesla, the trailblazer in electric vehicles, is cutting the cord on nearly 2,700 jobs at its Austin "Gigafactory," in a move that's sending shockwaves through the Texas state. The mass layoffs revealed through a notice sent to the Texas Workforce Commission, will begin on June 14th and roll out over two weeks.

These layoffs hit a workforce that doesn't have the protection of union representation. Despite being one of Austin's largest job providers, Tesla is scaling back its staff significantly in response to a tough quarter, according to CBS Austin.

Following a previous announcement of layoffs affecting the workforce by about 10%, or roughly 14,000 positions globally, this move by the EV giant signals a period of restructuring amid lagging vehicle sales, which were down nearly 9% year-over-year.

The Austin City Council Member Vanessa Fuentes voiced concern for the local families impacted by the layoffs, “Tesla is one of our largest employers and this will affect many in our community,” as stated in an interview obtained by CBS Austin. Despite the clear signs of internal financial tumult, Tesla officials remained mum on inquiries regarding the Austin layoffs.