Tesla and Rivian will both be conducting another round of layoffs impacting employees in California as both automakers continue to trim their workforces.
According to the government filings, Tesla plans to let go more than 600 workers in California, including 378 workers at its Fremont factory and 223 people at its Palo Alto offices. The layoffs will start on June 20, 2024. The job cuts are not only in one department. Instead, Tesla is cutting several job categories, including electricians, technicians, athletic trainers and software engineers.
These cuts do not come as a shock, as Musk announced that Tesla would be downsizing with a cut of more than ten percent of its entire workforce back in April. In his email on April 16, Musk noted:
With rapid growth, there has been duplication of roles and job functions in certain areas. 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…There is nothing I hate more, but it must be done.
The cuts have been significant, but it appears that some teams have been harder hit than others. According to previous reports, Tesla’s marketing, engineering, software, service and Supercharger teams have all been slashed dramatically, with more potential cuts across the company on the horizon.
At the same time, Rivian will also be downsizing its team in California.
In a letter dated April 24, Scott Griffin, the company’s Vice President of People, informed the California’s Employment Development Department about the decision to lay off over 120 employees. The layoffs will impact 89 positions in Irvine, CA, and 28 in Palo Alto, CA. These layoffs, scheduled to take effect on June 18, 2024, are expected to be permanent.
In April, Rivian announced plans to lay off approximately 1% of its workforce. This follows previous reductions of 6% in July 2022, 6% in May 2023, and 10% in February 2024, cumulatively affecting several thousand employees across its headquarters and factories.
