Almost 2,700 Austin-based Tesla employees will be laid off as part of the automaker's move to cut 10% of its global workforce, an April 22 Worker Adjustment and Retraining Act, or WARN, notice, revealed.

Tesla will begin terminating the 2,688 employees during a two-week period starting June 14, according to the notice.

The context

The layoff announcement follows Tesla’s first quarter of 2024 report that revealed total revenues dropped 9% year over year.

The impact

Tesla will remain one of the largest private employers in the region after the layoffs with about 20,000 workers, according to data from economic development organization Opportunity Austin.

“It's likely the employees impacted will find positions in other tech manufacturing positions throughout the region,” said Stacy Schmitt, senior vice president of communications and external affairs for Opportunity Austin. “At the end of 2022, there were 44,234 tech manufacturing employees in the region. For example, the recent Samsung expansion is set to create more than 4,500 manufacturing jobs.”