Tesla cuts 601 jobs in Bay Area, sign of more trouble


In the fourth straight week of layoff announcements, Tesla said it is now focusing on reducing staff at its Bay Area facilities as part of a broader move to cut jobs globally.

State documents show Tesla plans to lay off 378 employees at its Fremont facility and 233 at its Palo Alto offices.

The layoffs will occur over a 14-day period beginning June 20.

An email sent to Tesla officials requesting comment was not immediately returned.

The layoffs come as the company battles falling sales, a flight of top executives, a falling stock price and quality issues with the new Cybertruck. The low-cost Model 2 recently promised by CEO Elon Musk also appears to be dead.

It is not immediately clear which positions are being cut. The San Francisco Chronicle reported they would include technicians, electricians, software engineers, plumbers and sports coaches.

On April 15, Musk announced in an email to staff that Tesla was cutting more than 10% of its workforce, citing overlapping jobs and the need to cut costs.

A week later, Telsa said it was laying off 3,332 workers at its facilities and offices in Fremont, Palo Alto, Burbank and Lathrop.

Including the latest cuts, Telsa has announced 3,933 layoffs this year in California.

“As we prepare the company for our next phase of growth, it is extremely important to analyze all aspects of the company to reduce costs and increase productivity,” Musk wrote in the April email.

“As part of this effort, we have conducted a comprehensive review of the organization and made the difficult decision to reduce our workforce by more than 10% globally,” he continued. “There's nothing I hate more, but it has to be done.”

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