Tesla Cuts 600 Jobs In California Amid Mass Layoffs - Forbes

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The layoffs include 601 employees at manufacturing facilities and engineering offices in Palo Alto and Fremont, California, according to a May 13 Worker Adjustment and Retraining Notification (WARN) Act notice.

Tesla will lay off 378 employees at the company’s Fremont-based manufacturing plant and 223 more employees at its engineering headquarters in Palo Alto during a two-week period beginning June 20, according to the notice.

Among the positions eliminated by Tesla include directors for environmental health and safety and user experience design in Fremont and two directors of technical programs in Palo Alto.

in Layoffsby INMF88

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96%

16d

DangerousAd1731

16d

Every time I read about Tesla layoffs, I keep seeing comments how it's good for them to get rid of people to keep the best of the best. That's a yikes.

memyselfandi1987

16d

This mofo started the layoff trend with Twitter and it snowballed into tech going crazy.

jenryalee

16d

The only thing this billionaire did was cost hundreds of thousands of people their jobs, while putting dangerous cars on the road. Eff him.

Fantor73

16d

Someone called Elon a Bond villain and that just resonates....

meshreplacer

16d

Not even a bond villain because at least they are charismatic. Have you seen this dunce speak in public lately?

NewPresWhoDis

15d

If Chauncey Gardner was a Bond villain, yes.

mzx380

16d

Lets not forget, he's giving himself a HUGE compensation package for it. That is just ridiculous.

WorkinSlave

15d

I didnt realize his companies had hundreds of thousands of employees. Damn.

jenryalee

14d

No, I meant the ripple effect it has on all of tech.

Left_Experience_9857

16d

People don’t realize that he started the layoffs. People realized that Twitter could run with a skeleton crew and everyone joined in

jonkl91

16d

Twitter isn't running the same though. There a lot more glitches than before. There are also a lot more bots. I was active in tech Twitter community and a lot of people stopped being active after Elon took Twitter. Accessibility teams got laid off too. There's a reason a lot of advertisers left.

your_aunt_susan

16d

I mean, there are a lot more bots on Twitter now at least in part because there are a lot more bots petiod

jonkl91

16d

Twitter always had bots. A few months after fully took over, the amount of bots went up drammatically.

Left_Experience_9857

16d

People didnt leave for the glitches. They left cause he couldnt shut his mouth.

gyozafish

16d

User name checks out

memyselfandi1987

16d

But but they lost majority of users and advertisers… had it been publicly traded, it would’ve bottomed out on stock market!

gyozafish

16d

Please tell me about all the money it was making before he bought it?

memyselfandi1987

16d

It was the 2nd lowest mass social media platform In terms of revenue after Snapchat. But still it was making revenue.

gyozafish

16d

How much profit?

thebeepboopbeep

16d

Totally… it’s like Elon started it, and then once Zuck followed his lead all bets were off the whole industry dived into mass layoffs. It’s really terrible when you add up the risks it poses to peoples’ livelihoods, their mental health, future generations, etc. All good for those who can land a new role comparable pay quickly, but those who can’t are set back quite a bit.

Joshiane

16d

Goes to show how these so called visionaries are nothing more than fucking sheep.

My favorite part is when the Spotify CEO said that they regretted laying off their senior engineers because the transition was "harder than we thought, actually. Who could've known" after shit started to break.

thebeepboopbeep

15d

The exhibits in the Twitter v. Musk trial revealed so much about the lack of critical thinking — I remember a decade ago people would proudly claim to be “Elon enthusiasts” and all those people look like fools now.

NewPresWhoDis

15d

Okay, but Google and Meta are, at the end of the day, ad vehicles. They do some neat things but the core business is convincing you to buy stuff.

jonkl91

16d

It's so dumb. I've seen some of the absolute best get laid off. There's corporate politics and randomness when it comes to layoffs. And I've seen instances where people who take credit for other people's work stay while the person who does the work get laid off.

Yer_Uncles_roommate

16d

Two of my family member work at Tesla in Nevada. I'm hoping the layoffs don't hit them there because there's really nothing else for them that pays over $20 an hour where they live.

ITypeStupdThngsc84ju

16d

If they are in cell production, layoffs are unlikely. Nevada is responsible for 2170 production, and one of their issues is that they can't produce enough of those and thus are having to rely on imports.

They are cutting back vehicle production, but not domestic cell production.

I'd only expect this to change if the tax credit rules were repealed.

delosijack

16d

Good thing is Elon might be getting a $56B bonus, so it all evens out

Over_Information9877

16d

That's stock.

r00tdenied

16d

Which he can leverage as collateral for cash loans

delosijack

16d

Or sell for cash

r00tdenied

16d

Exactly, but he probably doesn't want to dillute his ownership too much so he'd probably just use it as collateral

NewPresWhoDis

15d

Eventually, but not all at once. Doing so would take most of the S&P 500 with him.

ThelastguyonMars

16d

ya my buddy just got let go

Guilty_Jackrabbit

16d

My theory is Elon expects NHTSA to investigate their FSD and find some serious shit that will force them to implement some very costly fixes, including on that huge inventory of cars that are just sitting around unsold. If that's the case, Tesla may hit a financial iceberg and Elon wants a cash grab before that happens.

NewPresWhoDis

15d

Even simpler....

Elon: Hey, yo, China, y'all want some electric whips?

China: *Leo DiCaprio wiping tears with $10k BYD cars meme*

gyozafish

-1

16d

Wow, … you might want to take a break from theorizing.

Affectionate_You_203

15d

I stopped reading at “that huge inventory of cars”. This sounds like a bot wrote it that only read headlines from click bait articles. News sites know anything dramatically bad sounding for Tesla generates the largest amount of clicks from the easily manipulated political weirdos on the internet. The model Y is the best selling car in the world. You’re delusional if you think Tesla is in financial danger at this point. Their worst quarter is still more than Rivian produces in a year and they smash any other EV. When just looking at the model Y it smashes gas cars and other EV’s.

nothing-serious-58

15d

If you think Tesla DOESN’T have an inventory problem, how do you explain why Tesla is currently whoring out both model 3’s and model Y’s with VERY expensive interest rate buy-downs to a ridiculous 0.99% for up to an absurd 72 months?

Guilty_Jackrabbit

15d

Also doesn't help that

1) Reporters have noted large lots of Teslas which are just sitting there

2) Hertz is selling their EV inventory (much of which are Teslas) at fairly low prices.

Like, these things aren't state secrets. What simping for a company does to a mfer ...

nothing-serious-58

15d

IMHO, Tesla has two big problems right now.

1: Most of the fanboys/girls already have their Teslas, all that leaves is the general market, (who don’t buy based strictly on emotions).

2: It’s a very troubling time for the automotive industry. Effects of recent inflation plus a normal interest-rate environment is a big problem .

Affectionate_You_203

15d

If you’re just casually paying attention to this and clicking on click-bait articles that know social media users hate Elon then I can understand why you don’t understand why each one of those things is not what it seems.

Affectionate_You_203

15d

They just raised the price on the 3 performance. The other 2 model 3’s don’t qualify for the 7500 rebate right now because the government changed the rules midstream. The model Y is the best selling car in the world even if Tesla had one flat quarter. For the past few years people have been taking pictures of huge lots of teslas and writing click bait headlines about how they can’t sell. The fact is they don’t have dealerships so they rent out big lots to store cars and as the company ramps and becomes a juggernaut you’ll see even more of these lots full of their cars because there are always going to be expanding needs.

Batetrick_Patman

16d

Enough with these fucking layoffs. If a company reports a "record" profit and they laid people off the same year they should be fined every penny of the wages they would of paid out and that goes straight to compensate the people who they fucked over.

ITypeStupdThngsc84ju

16d

They had a couple billion in negative cash for this past quarter, have excessive committed capital expenditures, and a real inventory problem.

The layoffs are reckless, but they do have real problems too unfortunately.

NewPresWhoDis

15d

Were the workers otherwise not paid for their labor? Because that's fucking them over.

weirdfurrybanter

-4

16d

No one fked anyone over. A business isn't a charity. This is a good lesson that job markets have swings. The covid job glut is over and people are mad they have to actually work to find a new job smh

palmatumthrowaway

15d

Duh. People want to work so that they can provide for themselves and their family. Since the beginning of time. When it’s hard to find a new job it makes the situation worse for them and their family and the entities they have credit with.

Sidvicieux

16d

Elon is the worst Tesla performer, when is he gonna get laid off?

doozyplex

16d

He’s not.

troycalm

15d

At least they got cut early. Tesla won’t even exist in 5 years.

Dull_Wrongdoer_3017

16d

BYD vehicles are better and at a fraction of a cost of Teslas. The US needs to protect Tesla and other American auto manufacturers by adding tariffs of 100%.

They've lost, and Elon is now in the processes of gutting Tesla to save the scraps for himself.

mincinashu

15d

Does the BYD CEO ask for tens of billion compensation? If Tesla can pay one guy billions, then perhaps their margins are too high.

doozyplex

16d

Sftu. They aren’t.

altmly

15d

Your argument is stfu. Very strong indeed.

Tiny_Seaworthiness51

16d

Space X next ??

doozyplex

16d

Spacex is private.

MorinOakenshield

15d

Not a lawyer but I think private companies still have to file WARN letters (if applicable)

baby_budda

16d

I remember when Toyota laid thousands off at the Fremont facility in 2009.

MorinOakenshield

15d

What was it like?

baby_budda

15d

What was what like? Getting laid off and losing your job?

MorinOakenshield

15d

I mean the impact on the local area. Was it easy to get another job? Sorry it was late when I was asking

baby_budda

15d

I wasn't employed by them. But I lived in the area, and it was bad because the whole plant shut down, as did some of the suppliers that supplied the plant. Tesla took it over a year later.

Affectionate_You_203

15d

Indeed just fired a bunch of people too. Seems like mass layoffs are on the horizon with many different companies

Ok_Active_3993

16d

But the media tells us the economy is super strong

clingbat

16d

I'm all for shitting on this job market but Elon driving Tesla into the ground is its own thing honestly.

Rational actors don't fire essentially their entire supercharger, public policy and HR teams in a single week lol.

r00tdenied

16d

Cybertruck is also shaping up to be a colossal disaster with massive quality control issues. There are going to be massive recalls when NHSTA realizes how fucking unsafe it is on the road and it will bankrupt Tesla. The question is if the board cuts Elon loose to save the stock holders or makes him and everyone else go down with the ship.

NewPresWhoDis

15d

Cybertruck :: Tesla

The Homer :: Herb Motors

r00tdenied

16d

It is. Tesla is fucked though, it has nothing to do with the economy. It has to do with piss poor leadership.

Ok_Active_3993

16d

All my friends got laid off in tech. I don’t see the strong economy

r00tdenied

16d

Tech foolishly over hired during the pandemic. The tech workforce numbers are still above 2019 bro. Also anyone who thinks Tesla is really a tech company is buying into Elon's scam lmao

NewPresWhoDis

15d

The tech overhiring also pulled in people from the service sector whose roles there have been replaced or won't adequately subsidize a "Day in the life of a project manager" TikTok lifestyle.

NewPresWhoDis

15d

One sector =/= The Economy(tm)

Ok_Active_3993

15d

All my friends and coworkers have at least $10k in cc debt. Virtually nothing in savings. My friends in tech are almost all laid off. I live in NYC and have never seen so many homeless people in my 40 years of living here. My friends in the RE sector are changing careers due to the slowdown.

Circusssssssssssssss

16d

Linky

BeginningFloor1221

16d

A lot of manufacturers of cars have been doing lay offs as well.

beland-photomedia

16d

Just a knee-jerk reaction: I think it’s cruel to offer major bonuses and family planning services as an employer, only to sack them a short time later. Those kids may have been planned with those benefits in mind. It seems Elon wants $53 billion more than he wants people having stability and ability to afford children.

Fit_Bus9614

14d

He doesn't care

YesIReallyAmYourGod

16d

Next is Walmart and Home Depot.

Equivalent_Section13

15d

That's really tough

txiao007

15d

Old news

Vast_Cricket

12d

Apple automonus vehicle group engineers who have not found work yet. Now this 223 victims from PA.

Rogue1_76

16d

Gotta pay for Elon's raise somehow.

doozyplex

16d

Elon hasn’t been paid

Cluedo86

15d

He sure enough has

MorinOakenshield

15d

Elon probably doesn’t get a pay raise, he probably doesn’t even have close to the tax limited compensation amount. He probably gets stock based compensation which is tied directly to the company value. So if these cuts served no value from a business sense then he would be shooting himself in the foot.

Edit: although in a sense you’re correct: this decision does relate to raising his “pay”. He is trying to in theory increase the company value.

Think about it like this. If Tesla was a lemonade stand and they made 90% of their profit from selling lemonade but lost 10% of profits from banana splits, then laying off the banana split division would make the company more profitable. Is this what Elon is doing? I have no idea, I don’t work at Tesla nor am I a major stock holder. I can only speculate.

ScheduleFormer1394

16d

Elon is such douche....

InspectorRound8920

16d

The moron is trying to justify his $56b compensation package

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