After Google, now Tesla announces layoffs of over 6,000 employees in Texas, California

Elon Musk’s Tesla is set to lay off over 6,000 employees in Texas and California over slow demand and falling margins.

Last week, EV giant Tesla announced more than 10% cut in its global workforce under pressure from dropping sales and an intensifying competition among EV makers but the exact number of employees was not revealed.

On April 17, Google also announced a major lay off of its employees that possibly affected the finance division of the company. 

The layoffs are expected to begin on June 14, with the company expected to lay off 2,688 employees in Austin, Texas, and 3,332 in various locations across California.

Details of the layoffs was revealed through notifications to the states of Texas and California on Monday, in compliance with US labor laws which mandates notification of planned closings or mass layoffs at least 60 days in advance for companies with 100 or more employees.

Meanwhile, CEO Elon Musk took to X to highlight Tesla's overall job creation, stating, “Tesla has now created over 30,000 manufacturing jobs in California!”

Tesla's decision to downsize comes after the company witnessed a challenging financial quarter. The company reported a net profit of USD 1.13 billion for the first quarter of 2024, marking a drop of over 50% from the previous year. 

Revenue also fell by 9% year-over-year to $21.3 billion. This decline is attributed majorly to decreased sales, affected by a competitive EV market and inflationary pressures.