Tesla is planning to lay off more workers at its Gigafactory in Nevada. This move is part of the company’s broader efforts to reduce its workforce globally. According to a notice sent to the Nevada Department of Employment, Training, and Rehabilitation, around 693 employees are set to be cut from the plant in Sparks, Nevada.
This notice is in compliance with the U.S. Worker Adjustment and Retraining Notification (WARN) Act, which mandates that companies with more than 100 employees must report mass layoffs or location closings 60 days prior to the official announcement. Tesla’s decision to reduce headcount by over 10 percent is described as a necessary step to prepare the company for its next phase of growth. The expected annual cost savings from this restructuring are projected to exceed $1.1 billion.