Elon Musk-owned Tesla, on Wednesday, said the electronic vehicle manufacturer will lay off over 10% of its workforce in the first quarterly earnings call, with an aim to increase profitability and ultimately increase the scale of investment in artificial intelligence (AI).
The company looks to lay off 6,020 employees in Texas and California with 3,332 jobs to be terminated in California and 2,688 positions to be eliminated in Texas starting June 14, based on a report by Reuters News Agency on Wednesday.
Elon Musk-owned Tesla has seen a decline in quarterly revenue due to a drop in sales due to seasonal and market dynamic changes as well as intensifying price war among EV makers, said the spokesperson in the earnings call.
A few hours before the call started, owner of the tech-based automobile manufacturer Musk posted on his social handle on X, “Tesla has now created over 30,000 manufacturing jobs in California!”
Based on the annual report, the overall employee headcount of Tesla across the globe was 140,473, as of December 31, 2023.
Earlier this week, Tesla reportedly signed a deal with India-based Tata Electronics to acquire semiconductor chips for its global operations, reported Times of India, to reflect the growing interest in India beyond local revenue generation.
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