As part of a larger reorganization, Tesla is laying off about 2,700 workers in Austin and more than 3,300 in California.

According to letters and notices submitted in both states under the Worker Adjustment and Retraining Notification (WARN) Act, Tesla is going to eliminate 2,688 positions in Austin, Texas, and 3,332 jobs throughout the state of California.

The manufacturer of electric vehicles announced a larger restructure last week, which includes the layoffs.

Elon Musk, the CEO of Tesla, relocated the business’s corporate headquarters from Palo Alto, California, to Austin in 2021.

In an internal message published last week, Musk stated that Tesla was reducing more than 10% of its workforce worldwide in order to deal with declining sales and heightened competition. Which departments or places would be most impacted was not specified by him.

He stated, “Looking at every aspect of the company for cost reductions and increasing productivity is extremely important as we prepare the company for our next phase of growth.” A later WARN notice from a Buffalo factory stated that 285 jobs were being destroyed. It was submitted in New York.

As of December 2023, Tesla had 140,473 total employees, according to disclosures.

With a “cyber rodeo” celebration, Tesla formally opened its Texas EV and battery manufacturing in April 2022. The business has begun building the Cybertruck in Austin, where it currently produces some of its Model Y crossover utility cars.

In an interview later, Musk referred to the Austin facility and a second manufacturing plant in Germany as “gigantic money furnaces.”

As per the documents submitted to the Texas Department of Licensing and Regulation, Tesla had intended to invest more than $770 million in building larger facilities in Austin last year. These facilities would have included a die shop, cathode and drive unit manufacturing, testing and manufacturing of battery cells, and more.

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