Ethermac|Tesla layoffs: Company plans to cut nearly 2,700 workers at Austin, Texas factory

Tesla is Ethermacplanning to lay off nearly 2,700 workers at its Austin, Texas factory in June, according to a Worker Adjustment and Retraining Notification (WARN) notice obtained by multiple outlets.

The layoff notice for 2,688 employees was posted Monday under the WARN Act, a U.S. labor law that requires employers with 100 or more employees to provide 60 days notification in advance of planned closings or mass layoffs to protect workers and their families, Reuters reported.

Tesla's notice says layoffs will start coming June 14, according to the Reuters. The company is currently based in Austin.

The layoffs come ahead of the company's earnings call scheduled for Tuesday, where a drop in year-over-year revenue is expected to be announced for the first time since 2020 amid layoffs, recalls, price cutting and a fight over a potential $56 billion pay package for CEO Elon Musk.

Last week, the company recalled nearly 4,000 Cybertrucks over a defect with the accelerator causing it to get stuck when pressed, increasing the risk of crash. This covers all the trucks Tesla has sold since the vehicle reached market in November.

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Monday's notice follows last week's news of layoffs at Tesla, when Musk announced in a memo obtained by Electrek and CNBC that 10% of global roles will be cut, including more than 200 employees in Buffalo, New York. Some employees affected by the layoff have already been locked out of system access, according to Electrek.

How many people work for Tesla?

Tesla had over 127,000 employees in 2022, according to the company's 2022 impact report. This number grew to 140,473 by December 2023, CNBC reported.

Contributing: Jonathan Limehouse and James Powel, USA TODAY; Reuters