Tesla is planning to lay off 693 employees at its Nevada facilities as part of a broader 10% reduction in its workforce, announced earlier this month to cut costs amidst declining electric vehicle (EV) sales and margins.
The company filed a notice with the Nevada Department of Employment, Training, and Rehabilitation, indicating its intention to lay off the aforementioned number of employees at its Sparks, Nevada facilities, as reported by Reuters.
Tesla has not yet responded to requests for comment from Benzinga regarding this matter.
The layoff plan was initially announced on April 15, with Tesla intending to reduce its global workforce by about 10%, equating to approximately 14,000 employees.
Elon Musk, CEO of Tesla, stated during an interview that such reorganizations and streamlining efforts are necessary about every five years to prepare the company for its next phase of growth.
As per WARN notices filed with the states of Texas and California, Tesla is set to eliminate 3,332 jobs in California and 2,688 positions in Texas, totaling over 6,000 positions, starting June 14.
Additionally, Tesla’s net profit for the recent period stood at $1.13 billion, marking a 55% decline from $2.51 billion recorded a year earlier.
Despite the profit decrease, Elon Musk aimed to reassure investors by pledging a faster rollout of more affordable EV models.
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