Nevada Reels as Tesla Slashes Hundreds of Jobs

2024-06-26

After announcing plans to reduce 10% of its workforce, Tesla has shared the next location for mass layoffs. 

New Layoff Details

Image Credit: Shutterstock / Salivanchuk Semen

The world’s biggest EV manufacturer has finally started announcing the details of its mass staff reduction efforts this year, and a facility in Nevada is the latest location to be hit.

Job Cuts in Nevada

Image Credit: Shutterstock / nelen

A government filing was made on April 27, declaring Tesla’s plan to lay off 693 employees working at company facilities in Sparks, Nevada. 

10% Layoffs Company-Wide

Image Credit: Shutterstock / Frederic Legrand – COMEO

The job cuts are part of an announcement by Elon Musk earlier this month, sharing the company’s plans to lay off 10% of its global workforce as part of its “next phase” of growth.

Filed With the State

Image Credit: Shutterstock / Studio Romantic

The filing was submitted to the Nevada Department of Employment, Training, and Rehabilitation this week, in line with US labor laws that require companies to give at least 60 days’ notice before making any major layoffs.

Effective in June

Image Credit: Shutterstock / chase4concept

Nevada layoffs will be in effect as of June 14, 2024, just a day before similar layoffs become effective at a company site in Buffalo, New York, where 285 job losses were announced earlier this month.

Texas and California Too

Image Credit: Shutterstock / Twinsterphoto

This announcement also trails the recent news of layoffs in Texas and California which affected up to 6,200 workers between both states. 

Bad News for Nevada

Image Credit: Shutterstock / fizkes

Though it pales in comparison to the California and Texas numbers, it certainly is a major layoff for Nevada. In fact, it is one of the biggest mass layoffs the state has faced so far this year. 

Behind Tropicana

Image Credit: Shutterstock / MDV Edwards

It comes second only to the closure of the Tropicana Las Vegas, a historic hotel-casino that was shut down in April and resulted in 744 job losses for Tropicana employees.  

A Major Employer for the State

Image Credit: Shutterstock / Robert Way

Tesla has been a major employer in Northern Nevada for several years and even pledged to expand its operations in the area via a $3.6 billion investment after the company received a $330 million tax abatement from the state government.

Tesla Staff Reductions

Image Credit: Shutterstock / fizkes

With a global headcount of more than 140,000 staff as of late 2023 according to a filing with federal regulators, company layoffs are expected to meet or exceed 14,000 jobs.

A Necessary Move

Image Credit: Shutterstock / Frederic Legrand – COMEO

Tesla staff received a memo two weeks ago announcing the mass layoffs, which CEO Musk described as a necessary move to help facilitate incoming changes to the company structure.

Results of Thorough Review

Image Credit: Shutterstock / ESB Professional

“We have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally,” the memo read.

“Duplication of Roles”

Image Credit: Shutterstock / fizkes

“Over the years, we have grown rapidly with multiple factories scaling around the globe,” it continued.  “With this rapid growth, there has been duplication of roles and job functions in certain areas.”

Bad Quarter for Tesla

Image Credit: Shutterstock / SewCreamStudio

The layoffs are a cost-cutting strategy due to falling sales and under-delivery by the EV manufacturer. As of the first quarter of 2024, Tesla reported a 9% drop in revenue, the largest drop in over 10 years. 

“Next Phase of Growth”

Image Credit: Shutterstock / Song_about_summer

Musk also acknowledged this in a separate email. “As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” he wrote. 

Competition Heats Up

Image Credit: Shutterstock / Virrage Images

Growing global competition is also a problem, with Chinese EV companies like BYD ramping up production, and being able to produce models at a lower cost than Tesla. 

Price Slashing 

Image Credit: Shutterstock / Artmim

Reducing product prices was the next move for the company, particularly to combat rising competition. Tesla cut prices for three of their five vehicle models, including the Model Y and Model X, in the same week that the layoffs were announced. 

Will It Stop At 10%?

Image Credit: Shutterstock / PhotoByToR

With 6,200 jobs axed in Texas and California, approximately 700 in Nevada, and 300 in New York, Tesla layoff announcements have now met roughly half of its 10% goal. However, it is unclear if the company will stop at that initial 10% figure.

Rumors of Further Layoffs

Image Credit: Shutterstock / Frederic Legrand – COMEO

Recent reports have circulated that Musk may be pushing for even more global layoffs as part of Tesla’s “next phase.”

Potential for More Cuts

Image Credit: Shutterstock / Andrii Yalanskyi

If these reports are verified the company could be looking at more than 20,000 positions axed, and even as much as 20% of its global workforce reduced. 

23 Steep Taxes Adding to California Residents’ Burden

Image Credit: Shutterstock / Alex Millauer

California: a place of sunshine, innovation, and, unfortunately, some of the nation’s highest taxes. From LA’s beaches to Silicon Valley’s tech hubs, residents grapple with a maze of state taxes. Here’s a glance at 23 taxes that might surprise both Californians and outsiders. 23 Steep Taxes Adding to California Residents’ Burden

Cash in on Nostalgia: 21 Toys Now Worth a Fortune

Image Credit: Shutterstock / Kostikova Natalia

Time to dust off the boxes and find that once-cherished toy from your childhood. For collectors and enthusiasts, they items have become valued objects and they can be worth big bucks – are there any of these in your attic? Cash in on Nostalgia: 21 Toys Now Worth a Fortune

Millennials Don’t Buy These 19 Products Anymore

Image Credit: Shutterstock / mariakray

Millennials are changing consumer habits, quietly replacing once-staple products and traditions. Often criticized for their disruptive preferences, this generation is reshaping the marketplace with digital expertise, ethical buying, and a taste for the unconventional. Millennials Don’t Buy These 19 Products Anymore

10 Reasons Firearms Are Essential to America’s Fabric

Image Credit: Shutterstock / rblfmr

Americans’ strong attachment to guns is influenced by constitutional rights, historical context, and cultural traditions. This article explores the cultural perspective driving their unwavering support for gun ownership, revealing the key factors shaping this enduring aspect of American life. 10 Reasons Firearms Are Essential to America’s Fabric

California’s 16 New Laws Raise Red Flags for Prospective Residents

Image Credit: Shutterstock / PeopleImages.com – Yuri A

California, celebrated for its beaches, tech prowess, and diversity, is now gaining attention for its recent legislation, prompting some residents to reconsider their residency. Explore the new laws of 2024 and the controversies and migration they’re stirring. California’s 16 New Laws Raise Red Flags for Prospective Residents

The post Nevada Reels as Tesla Slashes Hundreds of Jobs first appeared on Thrift My Life.

Featured Image Credit: Shutterstock / RYO Alexandre.

The content of this article is for informational purposes only and does not constitute or replace professional financial advice.