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Tesla layoffs impacted nearly 12% of its Texas staff

Elon Musk at Tesla factory near Austin
Elon Musk during the grand opening of the Tesla factory near Austin. SUZANNE CORDEIRO/Getty Images
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Elon Musk's focus on Texas didn't stop him cutting jobs in the Lone Star State.

Tesla laid off 2,688 workers at its Austin factory, according to a regulatory filing under the Worker Adjustment and Retraining Notification Act. The WARN Act requires most companies with more than 100 employees to provide 60 days of notice before a large-scale layoff.

The Texas site employed about 22,777 people before the layoffs — meaning Tesla cut nearly 12% of its staff at the site.

The permanent reductions will begin on "the 14-day period beginning on June 14, 2024," according to the notice, and are likely part of larger layoffs across Tesla. On Sunday night, CEO Elon Musk told staff the company was cutting more than 10% of its workforce. Within hours, laid-off workers were notified their employment had been terminated, effective immediately.

Tesla's Austin Gigafactory is the production hub for the company's Model Y and Cybertruck. The site also serves as the company's headquarters. Tesla is attempting to move the company's state of incorporation to Texas as well.

The broader layoffs appear to have affected workers across the country, as well as some staff at Tesla's international offices. Last week, a WARN notice revealed the cuts had impacted 280 workers at a Tesla facility in Buffalo, New York. At this point, it's unclear how many workers have been cut at factories in California and Nevada.

A Tesla spokesperson did not immediately respond to a request for comment from Business Insider.

Do you work for Tesla or have a tip? Reach out to the reporter via a non-work email and device at gkay@jkmperu.com

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Grace Kay
Grace Kay was a Correspondent on Business Insider’s enterprise desk, where she covered the inner workings of Tesla, Elon Musk’s AI startup, xAI, and the broader robotics and electric vehicle industries.Her stories have been cited by multiple publications, including Reuters, Bloomberg, and CNBC. Before joining Business Insider, she worked at Bloomberg and Forbes.Tesla: Inside 'Project Rodeo,' the Tesla effort pushing the limits of self-driving technologyInternal Tesla salary database shows Elon Musk's strategy: Lower salaries, bigger stock grantsTesla tells staff it plans to roll out its Robotaxi service in San Francisco this weekendTesla has been working on modified Model Ys for its Robotaxi programTesla prioritizes Musk's and other 'VIP' drivers' data to train self-driving softwareAshok Elluswamy is the most powerful Tesla executive you've never heard ofxAI:Internal documents reveal how Elon Musk's xAI trains Grok to be the anti-woke chatbotXAI's Macrohard project stalls as Tesla ramps up a similar AI agent effortElon Musk's xAI plans to supply computing power to coding startup CursorWar rooms, group chats, and video games: Inside Elon Musk's AI startupBehind Grok's 'sexy' settings, workers review explicit and disturbing contentElon Musk's xAI lays off hundreds of workers tasked with training GrokEVs and robots:Fisker employees are fixing some customers' cars with parts from the company's vehicle 'graveyard,' sources sayFisker Ocean reservation cancellations top 40,000 as the EV company tries to fight off bankruptcy, leaked data showsInside the downfall of Henrik Fisker's second automotive startup, which just filed for bankruptcyInside the glass-walled Tesla lab where workers train the Optimus robot to act like a humanInside OpenAI's renewed push into robotics