as part of Tesla’s Following a massive reorganization, the electric vehicle maker notified the California Employment Development Department this week that it will lay off about 600 more employees at its manufacturing plants and engineering offices between Fremont and Palo Alto.
The latest layoffs eliminate everything from entry-level positions to supervisors and affect a wide range of departments, affecting factory workers, software developers and robotics engineers.
The layoffs were reported in Worker Adjustment and Retraining Notification (WARN) Act documents obtained by CNBC through a public records request.
The company has been cutting jobs since at least January in the face of weak demand for Tesla’s electric vehicles and increasing competition. Chief Executive Elon Musk told employees in an April memo that the company would cut more than 10% of its global workforce, bringing its global workforce to 140,473 by the end of 2023.
Previous filings showed Tesla would lay off more than 6,300 employees in California, Austin, Texas, and Buffalo, New York.
Musk said during Tesla’s quarterly earnings call last month that the company had become “inefficient” by 25% to 30% over the past few years, meaning the ongoing layoffs could be larger than the 10% figure would suggest. It is shown that tens of thousands more employees are affected.
Fremont, where Tesla’s first U.S. manufacturing plant is located, is laying off 378 people, including those involved in staffing and vehicle assembly, according to WARN documents. There were 65 parking incidents at the company’s Kato Rd. Battery Development Center.
Tesla did not respond to a request for comment.
Among Fremont’s most senior positions eliminated were director of environmental health and safety and director of user experience design.
In Palo Alto, where the company’s engineering headquarters is located, another 233 employees lost their jobs, including two technical project managers.
Tesla also laid off most of the employees involved in designing and improving the app for customers and employees, according to two former employees directly familiar with the matter. WARN documents show that this was indeed the case, with many people on the team at Tesla’s Hanover Street factory in Palo Alto being laid off.
Tesla is facing reduced demand for the cars it makes in Fremont, including older Model S and X models and the Model 3 sedan. Total deliveries fell annually in the first quarter, and Tesla posted its largest year-over-year revenue decline since 2012.
Fierce competition, especially in China, continued to weigh on Tesla’s second-quarter sales. Xiaomi and Nio have both launched new electric vehicle models, lowering the price of Tesla’s most popular car.
Tesla shares have fallen about 30% so far this year, while the S&P 500 has gained 11%.
Musk has been trying to persuade investors not to focus on car sales but to support Tesla’s potential to eventually launch self-driving software, robotaxis and “sentient” humanoid robots. Musk and Tesla have long promised customers self-driving software to turn their existing electric vehicles into robo-taxis, but the company’s systems still require constant human oversight.
other recent layoffs Tesla’s team includes the team responsible for building Superchargers, a network of fast-charging electric vehicles, across the U.S.
Tesla reveals plans in annual report Archive By 2023, develop and optimize its charging infrastructure “to ensure cost effectiveness and customer satisfaction”. Tesla said in the filing that it needs to expand its “network to ensure sufficient availability to meet customer demand” after other car companies announced plans to adopt the North American charging standard.
Since laying off most of its Supercharger team, Tesla It is said began rehiring at least some members, a move reminiscent of the layoffs Musk made at Twitter after acquiring the company, which it later renamed X. of employees.
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