A Massive Company Is Now Cutting 2,600 Jobs in Texas

A massive company is now cutting 2,600 jobs in Texas as part of a ‘broad restructuring plan’ according to a WARN notice.

Tesla is eliminating a total of 2,688 jobs in Austin, Texas, according to Worker Adjustment and Retraining Notification (WARN) Act letters and notices.

Musk said in an internal memo last week that Tesla was cutting more than 10% of its global headcount as the EV maker reckons with flagging sales and increased competition.

However, he did not say which departments or locations would be most affected.

“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” he wrote.

A subsequent WARN notice filed in New York also indicated that 285 positions were being eliminated at a factory in Buffalo.

Tesla employed 140,473 people total as of December 2023, according to filings.

Tuesday’s WARN filings said, “none of the employees are represented by a union and none of the employees have bumping rights,” or the right of more senior workers to replace those with less seniority.

Tesla officially opened its Texas EV and battery factory in April 2022, with a “cyber rodeo” party.

The company now manufactures some of its Model Y crossover utility vehicles in Austin, and has started to build its Cybertruck there.

Musk later called the Austin factory, and another assembly plant in Germany, “gigantic money furnaces,” in an interview with Tesla Owners Silicon Valley, a fan club that promotes Tesla vehicles.

According to filings with the Texas Department of Licensing and Regulation, Tesla was planning to spend upward of $770 million last year on the construction of expanded facilities in Austin, including for battery cell testing and manufacturing, cathode and drive unit manufacturing, plus a die shop, among other things.

Cuts also affected workers at the company’s factories, engineering offices, stores, showrooms and service centers nationwide.

Jobs were also cut in Burbank and Lathrop, California, where Tesla makes spare parts at a foundry and assembles Megapack, battery energy storage systems.

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Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing

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Market News Today - A Massive Company Is Now Cutting 2,600 Jobs in Texas.
Market News Today – A Massive Company Is Now Cutting 2,600 Jobs in Texas.

A massive shoe retailer now announces a new wave of layoffs to hit headquarters this summer, affecting over 700 employees.

Nike has announced its ‘second phase’ of mass layoffs, effective June 28, according to a Worker Adjustment and Retraining Notification (WARN) filing.

A total of 740 employees will be impacted in the retailer’s home state.

The layoffs are part of the 2% workforce reduction Nike announced in February, which is taking place across two phases, the company confirmed via email.

Nike said job titles and the number of employees in each category would be provided at a later date, once the company has determined them.

Bumping rights are not available for the impacted employees, reports Retail Dive.

“Nike’s always at our best when we’re on the offense. The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities as interest in sport, health and wellness have never been stronger,” Nike said in a statement.

“While these changes will impact approximately 2% of our total workforce, we are grateful for the contributions made by all Nike teammates.”

The layoffs are tied to a cost-savings plan Nike unveiled in December, which is aimed at generating up to $2 billion in cumulative savings over three years.

Based on the company’s last annual report, the layoffs to 2% of its total workforce will impact more than 1,600 people.

Savings from the plan are set to be reinvested in driving growth, innovation and profitability.

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Also Read: A Massive Grocery Brand Now Files For Chapter 11 Bankruptcy

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Market News Today - A Massive Company Is Now Cutting 2,600 Jobs in Texas.
Market News Today – A Massive Company Is Now Cutting 2,600 Jobs in Texas.

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