Tesla Slashing 10% of Global Workforce, With Unknown Impact on Texas Jobs

• Tesla currently employs ~140,000 people globally.
• The company has faced setbacks with vehicle delivery reductions and stock price drops in 2024.

Austin-based Tesla is planning to cut 10% of its global workforce, according to reports by Reuters on Monday, citing an internal memo, with an unknown number of layoffs in Texas.

"I’m deeply concerned about Tesla’s mass layoffs, which reflect an alarming trend across our country’s tech industry. As one of Austin's largest employers, the impact of these layoffs will be significant and potentially devastating to many of our families." – District 2 Council Member Vanessa Fuentes

Tesla's recent performance has been less than stellar:

• A recent report shows a 20% drop in vehicle deliveries in Q1 2024 compared to Q4 2023.
• Stock prices have dropped ~35% since the start of the year.
• The company's annual report in January listed 140,473 employees; a 10% cut could affect over 14,000 jobs.
• Executives Drew Baglino and Rohan Patel have left.

Despite these setbacks, Tesla's growth and impact in Central Texas provide hope. Opportunity Austin spoke of Tesla's "next growth phase" and its positive impact on the region's economy.

As of now, the full extent of the layoffs and their impact on Texas remains uncertain.