Tesla is planning to reduce its workforce by over 6,000 jobs in Texas and California. The company witnessed a drop in profits again in the latest quarter
Tesla is reportedly planning to cut more than 6000 jobs across Texas and California. This news comes after two senior-level executives resigned from the luxury EV company. With a massive workforce totaling around 140,000, Elon Musk announced earlier this month that the company will be slashing more than 10 per cent of its workforce in order to save its costs.
As per a report by Bloomberg, Tesla will be trimming 2,688 positions in Austin, the company's home base and a key manufacturing hub. These job cuts will roll out over a two-week stretch beginning June 14, according to a WARN notice.
The company will also be laying off around 3,332 employees across different sites in California.
Tesla witnessed a consecutive fall in profit figures in the latest quarter report. The company announced a net profit of $1.13 billion for the first quarter of 2024, which translated into a fall of more than 50 per cent from the previous year.
The company's revenues for the same period dipped 9 per cent year-over-year to $21.3 billion from $23.33 billion, largely because of the sales taking a hit. However, the share price of the company managed to impress investors for a brief time.
The lower-than-expected quarterly figures are majorly attributed to the increasing competition in the EV market coupled with inflationary pressures looming around various economies.
Many reports also indicate that Tesla will be launching its long-awaited (and even canceled out once) Model 2.