Thousands of layoffs at a leading company – Colossus is reducing its staff

Bad news for thousands of workers at the electric car powerhouse, who will need to look for their next job.

Her exit door they will see starting from July 14 in total 6,020 Tesla employees in Texas and Nevadaamid a period of declining demand for electric cars and the shrinking profit margin of related model technology manufacturing companies.

As Reuters reports, the 2,688 layoffs will take place in Texas and 3,332 in California. THE Tesla revealed the number of workers to be laid off on Monday, as US labor law requires companies with 100 or more employees to give them 60 days notice before mass layoffs.

It is noted that at the Tesla factory in Austin, Texas, they employ approx 22,777 employees, which means the company is cutting about 12% of the company’s workforce.

The models are produced at the company’s plant in Austin Model Y and Cybertruck of the company, while also being its headquarters.

We remind you that a few days ago Tesla had announced that it would reduce its global workforce by 10%with the company’s strongman pointing out that the sales are a “necessary measure” to reorganize the brand ahead of its next phase of growth.

Among other things, the exit door was also seen by Tesla’s newly established marketing department in the USA, with Elon Musk to have… complaints about lack of originality in the way the models are advertised.

On Tuesday, April 23, Tesla reported 9% decline in first quarter revenue and continued shrinking of its profit margins amid a sharp decline in vehicle sales.

The electric car maker said revenue fell to 21.3 billion dollars from $23.3 billion in the same period last year. Analysts’ average estimate was for $22.15 billion, according to LSEG data.

This particular event marks the first quarterly year-over-year decline since early 2020; which was then due to the production stoppage during the Covid pandemic.

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