HOUSTON – Tesla will lay off nearly 2,700 employees from its Austin factory in June, according to a notice obtained by media outlets on Tuesday.
According to the notice, known as the Worker Adjustment and Retraining Notification (WARN), Tesla will permanently lay off 2,688 employees at its gigafactory in Austin, Texas during a 14-day period beginning June 14, Xinhua reported.
Tesla issued the notice to the Texas Workforce Commission and Austin Mayor Kirk Watson on Monday.
The company recalled nearly 4,000 Cybertrucks last week due to an accelerator pedal problem which could raise the risk of crashes. This covers all the trucks it sold since the vehicle reached the market in November.
Tesla issued a WARN letter to the New York Labour Department days ago, saying that the EV-maker will cancel 285 positions at its facility in Buffalo, New York.
Earlier this month, Tesla told its employees that it would lay off “more than 10%” of its global workforce, which could impact more than 14,000 people.
The news came after the electric automaker reported its first year-over-year drop in sales since 2020. The company has also warned that sales growth could be “notably lower” in 2024 than its stated goal of 50% growth each year.
Under the WARN Act, a US labour law, US employers with 100 or more employees are required to provide 60 days’ notification in advance for planned closings or mass layoffs. – April 24, 2024