Tesla is considering laying off more workers at its Gigafactory in Nevada, the latest in the company’s efforts to reduce its workforce globally.
The company has been hit with several additional rounds of layoffs after it sent a letter to affected workers globally that they would be let go earlier this month. From Tesla’s advertising team, which was cut entirely, to follow-up layoffs in the US and Germany, the move represents the company’s latest efforts to cut costs through restructuring – and which it calls “unnecessary.” Believes he is getting rid of it. ” Post.
As seen in a notice sent to the Nevada Department of Employment, Training and Rehabilitation this week, Tesla plans to lay off approximately 693 workers from the plant in Sparks, Nevada. reuters, The notice comes as a part of the US Worker Adjustment and Retraining Notification (WARN) Act, which requires companies with more than 100 workers to report any mass layoffs or location closings 60 days before the official announcement. Is required.
Tesla’s Giga Nevada makes battery cells, and the company is currently expanding the facility to add additional 4680 cell production capacity and production lines for the Semi.
Along with the recent layoffs, three high-profile Tesla executives have departed from the company, including senior vice president of powertrain and energy engineering Drew Baglino and vice president of public policy and business development Rohan Patel. In addition to Baglino and Patel, who announced their departures on Monday, the same day as news of the layoffs, Martin Viacha, vice president of investor relations, announced his departure at the end of the Q1 2024 earnings call on Tuesday.
Regarding layoffs, Tesla and Elon Musk have framed it as a difficult but necessary decision, with Musk stating that such restructuring is necessary every five years to reorganize and streamline the company for the next phase. May need it. Of development.”
Tesla’s earnings call also influenced the decision, with Chief Financial Officer Vaibhav Taneja highlighting the overall annual savings of the move, and using the same “next phase of growth” terminology.
“As we prepare the company for its next phase of growth, we have had to take the difficult but necessary decision to reduce our headcount by more than 10 percent,” Taneja said. “The savings generated on an annual basis are expected to exceed $1.1 billion.”
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