In a surprising turn of events, Tesla employees in the Austin area, home to the automaker’s headquarters, found themselves affected by recent job cuts. Among those affected were a senior equipment engineer and a production supervisor, according to LinkedIn posts. The layoffs appeared to come suddenly, with some employees receiving notifications in the early hours of the morning.
One former employee in Austin described the layoff as a “surprise,” noting that there had been no indication of cutbacks given the ongoing ramp-up in production. However, Tesla CEO Elon Musk attributed the decision to eliminate roles to the need for streamlining operations and reducing costs, as reported by Bloomberg News.
Despite the layoffs, some Tesla employees rushed to offer support to their affected colleagues, acknowledging the challenges they may face in finding new employment, especially for those with visa constraints.
The reduction in staff comes at a time when Tesla reported its first year-over-year decline in quarterly deliveries since 2020, amidst increasing competition in the electric vehicle market. Additionally, two Tesla executives, Senior Vice President Drew Baglino and Vice President of Public Policy and Business Development Rohan Patel, are also leaving the company.
This move marks Tesla’s latest round of layoffs since 2022 when CEO Elon Musk announced plans to cut 10 percent of salaried workers. Despite these challenges, Tesla remains active in hiring for certain entry-level positions in Austin and Houston.
