American automaker Tesla has announced to trim more jobs across various departments, media outlet Electrek reported on Monday. The news comes just weeks after Tesla laid off 10% of its workforce.
According to the report, citing unnamed sources, the electric vehicle maker’s latest round of layoff will affect workers across software, service, and engineering departments. Tesla employees have received email between Friday and Sunday about the broader layoffs.
The news follows the automaker’s announcement last month to trim its global workforce by more than 10%. The decision came amidst a slowdown in electric vehicle demand and follows a difficult start to the year for the electric carmaker.
A Reuters report highlighted that last month Tesla disclosed that it will slash more than 6,700 jobs across its locations in Texas, California, Nevada and New York. The report further noted that the automaker anticipates to book over $350 million in costs in the second quarter for the mass layoffs.
At that time, Tesla’s billionaire chief executive officer Elon Musk explained that the layoffs were necessary due to “rapid growth” that has led to “duplication of roles and job functions in certain areas.” This announcement came after the EV maker reported a drop in first-quarter auto deliveries.
Tesla made approximately 387,000 deliveries to customers in the first quarter of 2024, falling short of market expectations by about 13%, and marking its first fall in deliveries in nearly four years. While the company cited production problems caused by unforeseen factors such as attacks on shipping in the Red Sea and an arson attack on its European factory, the figures also pointed to a softening in global demand.
Meanwhile, the news of Tesla’s restructuring resonates with the broader layoff trend. Giants like Google, Amazon, Meta, Discord, etc. announcing workforce reductions, citing economic slowdowns and the need to adapt to changing market conditions.
