How Tesla Employees in Austin Are Coping With The Recent Layoffs
Elon Musk’s Monday email informing staff of impending job cuts took many Tesla employees by surprise. The Tesla CEO stated in the message that a 10% reduction in roles was necessary to control costs as economic conditions worsen. For Ezkel Love and others recently onboarded at Gigafactory Texas, the news meant immediate termination with no warning. “I got an email saying I was let go as part of the 10% cuts. It’s difficult not having work now,” said Love, who joined only a month ago.
Musk had foreshadowed challenges for Tesla if productivity and delivery numbers failed to improve. However, the swift implementation of widespread layoffs still came as a shock according to Fred Lambert, Editor-in-Chief of Electrek. “We heard rumblings for months that job cuts may come but Tesla employees didn’t expect it to happen so abruptly with no notice,” he stated. Lambert believes production delays for Tesla’s more affordable models also contributed to the need for staffing reductions.
How Austin-Based Tesla Employees Are Coping
For those in Austin now out of work like Ezkel Love, coping means immediately searching for new opportunities. “I have to find something fast to pay my bills. It’s hard that Tesla hired so many just to let us go,” he commented. Local Tesla employees are leaning on social networks and benefits like unemployment as they transition. Electrek’s Lambert notes Tesla continues recruiting in some areas too, creating mixed messages. Overall, the economic outlook remains uncertain for those in the electric vehicle industry.
As one of Austin’s largest private employers, Tesla’s fortunes have a significant local impact. Tesla employees previously felt optimistic being part of the electric vehicle revolution. But the reality of broader forces means companies must adapt headcounts too. While upsetting in the short-term, with his focus on the future Musk believes cuts now will strengthen Tesla’s long-term viability. For those left jobless, the challenge is similarly finding a new path during difficult economic times.
