Tesla Inc. (NASDAQ:TSLA) is reportedly set to lay off 693 employees at its Nevada facilities as part of the 10% layoff announced by the company earlier this month to reduce costs amid falling EV sales and margins.
What Happened: Tesla has filed a notice with the Nevada Department of Employment, Training, and Rehabilitation, indicating its intention to lay off 693 employees at its Sparks, Nevada facilities, Reuters reported.
Tesla did not immediately respond to Benzinga's request for comment.
Tesla announced its plan to lay off about 14,000 employees, or 10% of its global workforce, on April 15.
"About every five years, we need to reorganize and streamline the company for the next phase of growth," company CEO Elon Musk said on X about the sweeping job cuts.
Mapping The Layoffs Worldwide: According to WARN notices filed with the states of Texas and California, Tesla will eliminate 3,332 jobs in California and 2,688 positions in Texas, totaling over 6,000 positions, starting June 14.
The company also intends to cut around 400 jobs in Germany and 285 employees in Buffalo, New York, starting July 15.
Tesla’s Disappointing Results: Tesla's layoffs reflect the broader challenges facing the company, including declining sales and pricing pressures. For the first quarter, the EV giant reported revenue of $21.3 billion, down from the $23.33 billion reported a year earlier. This is the first time the company’s quarterly revenue has fallen since the pandemic in 2020.
Tesla's net profit stood at $1.13 billion, falling 55% from $2.51 billion a year earlier.
CEO Elon Musk, however, managed to assuage some investor concerns by promising a faster rollout of cheaper EV models.
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Read More: ‘Check Your Inbox!’: Tesla Sends Out Expedited Cybertruck Delivery Invites To Long-Term Shareholders
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy of Tesla.
