Tesla to lay off nearly 2,700 workers at factory in U.S. Texas

Tesla is to lay off nearly 2,700 employees in June at its factory in Austin, the capital city of U.S. state Texas, according to a notice obtained by multiple media outlets on Tuesday, reported Xinhua.

According to the notice, known as the Worker Adjustment and Retraining Notification (WARN), Tesla will be permanently laying off 2,688 employees at its Gigafactory in Austin during a 14-period day beginning June 14.

Tesla issued the notice to the Texas Workforce Commission and Mayor of Austin Kirk Watson on Monday.

The company recalled nearly 4,000 Cybertrucks last week due to an accelerator pedal problem that could raise the risk of crashes. This covers all the trucks Tesla has sold since the vehicle reached market in November.

Tesla issued a WARN letter to the New York State Department of Labor days ago saying that the EV-maker will cancel 285 positions at its facitily in Buffalo, New York.

Earlier this month, Tesla told its employees that it would lay off "more than 10 percent" of its global workforce, which could impact more than 14,000 people.

The news came after the electric automaker reported its first year-over-year drop in sales since 2020. The company has also warned that sales growth could be "notably lower" in 2024 than its stated goal of 50 percent growth each year.

Under the WARN Act, a U.S. labor law, U.S. employers with 100 or more employees are required to provide 60 days notification in advance of planned closings or mass layoffs.