An unexpected company is now laying off in Nevada as the giant prepares for its ‘next phase of growth’ by reducing costs.
Elon Musk’s Tesla laying off a total of 693 employees at its facilities in Sparks, Nevada, as part of its initiative to reduce over 10% of its worldwide workforce due to declining sales and increasing competition, according to a government notice released on Saturday.
The notice was submitted to the Nevada Department of Employment, Training, and Rehabilitation earlier this week, as mandated by US labor law.
The law requires companies with 100 or more employees to notify authorities 60 days in advance of planned closings or significant layoffs, as per the report.
This layoff announcement in Nevada follows Tesla’s recent significant layoffs in Texas and California, which affected up to 6,020 employees.
These actions are part of a broader cost-cutting initiative aimed at adjusting to evolving market dynamics within the electric car industry.
With Tesla employing over 140,000 individuals worldwide as of late 2023, the current layoffs constitute a substantial percentage of its workforce, according to the report.
Recent reports also suggested that the CEO, Elon Musk, has advocated for an even more substantial Layoffs at Tesla, possibly amounting to a 20% job cut, which could result in the elimination of over 20,000 positions in the company, reports MSN.
CEO Elon Musk made the following statement:
“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.
As part of this effort, we’ve done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10 per cent globally.
There is nothing I hate more, but it must be done.”
For more news and updates like this, opt-in for push notifications.
Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing
Other Economy News Today
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.
For more news and updates like this, opt-in for push notifications.
Also Read: A Massive Grocery Brand Now Files For Chapter 11 Bankruptcy
Market News Published Daily 📰
Don’t forget to opt-in for push notifications so you don’t miss a single article!
Also, thank you to all of our blog sponsors.
This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.
Scroll below to view my stock purchases this month!
You can also follow me on X (Twitter), Instagram, Facebook, or LinkedIn for daily news and updates on your favorite stories.
Frank Nez’s Stock Portfolio
Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?
Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.
11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.
Leave your thoughts below.
For more news and updates like this, opt-in for push notifications.