New Delhi, April 24: Tesla has announced its intention to lay off about 6,020 employees in Texas and California. Elon Musk-run Tesla, a major company in the electric vehicle sector, is now navigating through challenging times. In a recent development, the company has announced layoffs that will likely reduce its workforce significantly. The layoffs might see over 6,000 jobs cut across its operations in California and Texas. 

This step is considered to be a part of Tesla's strategy to stay viable amidst decreasing demand for its vehicles and shrinking profit margins. The announcement of the layoffs comes just as Tesla is preparing to share its latest quarterly results. Recently, Tesla layoffs indicated more than 10 per cent of the company's global workforce, a step that was taken as influenced by declining sales and increasing competition within the electric vehicle sector. Apart from that, Tesla had also laid off 40 employees from the Growth Content Team in the US. Tesla Layoffs Continue! Elon Musk’s EV Company Cuts 40 More Jobs in US Growth Content Team.

As per a report of BusinessToday, Tesla announces to lay off of over 6,000 jobs ahead of the quarterly results. The company is expected to cut 3,332 jobs in California and 2,688 positions in Texas. The upcoming Tesla layoffs will likely begin on June 14. These layoffs in 2024 are an indicator of the tough decisions Tesla is making to adjust its business model and cost structure in response to market conditions. Google Fires About 20 More Employees for Protesting Against Company's Cloud Computing Deal With Israel.

Additionally, 285 employees at Tesla's Buffalo, New York facility, for its Autopilot driver assistance software division, will likely be affected by the global job cuts. Layoffs at Tesla are a possible result of a larger strategic initiative to streamline the company's operations. The decision to lay off employees is never easy, but for Tesla, it appears to be a necessary step to maintain its position as a leading electric vehicle manufacturer.

(The above story first appeared on LatestLY on Apr 24, 2024 08:56 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).