Tesla Layoffs: Elon Musk's EV Maker To Cut 693 Employees Amid Decline In Sales

New Delhi: The multinational automotive company, Tesla is set to lay off 693 employees at its Sparks, Nevada location, as revealed in a government filing on April 27. This downsizing accounts for over 10 percent of its global workforce and is a response to decreasing sales and heightened competition in the electric vehicle market, as per Reuters report.

The company has submitted the notice earlier this week to the Nevada Department of Employment, Training and Rehabilitation following U.S labor laws. These laws mandate companies with 100 or more employees to give a 6–day notice period before significant layoffs or facility closures, as mentioned in the report. (Also Read: RBI Issues Draft Rules For Web Aggregators Of Loan Products)

The announcement follows after Tesla’s huge layoffs in Texas and California which affected up to 6,020 employees. This move is a part of a cost-cutting initiative as the electric marker adjusts to shifting market dynamics. Tesla employed over 140,000 people globally in late 2023. This marks the current layoffs a substantial portion of its workforce,; according to the report. (Also Read: Elon Musk Gets Richer Than Mark Zuckerberg As Meta CEO Suffers $18 Billion Loss)

The Tesla CEO, Elon Musk had reportedly suggested a 20 percent reduction in the company’s workforce. This proposal coincided with a decline in vehicle deliveries observed from the fourth quarter of 2023 to the first quarter of 2024.