X

Tesla's 7 percent workforce cut amounts to more than 1,000 jobs slashed in California

The layoffs take place amid accelerating Model 3 manufacturing.

Roadshow reported last month that Tesla was cutting its global workforce by roughly 7 percent. That amounts to around 3,000 personnel let go after Tesla expanded its head count by 30 percent last year. New data shows that about a third of those cut jobs are based in California.

According to California Employment Development Department filings sourced by the East Bay Times, that breaks down to 802 jobs cut at Tesla's manufacturing facility in Fremont, 137 manufacturing support positions in Lathrop and 78 jobs at the company's head office in Palo Alto.

On the heels of Tesla announcing the availability of the $35,000 Model 3 -- a technicality that factors in tax rebates and estimated fuel savings -- the layoffs are another way to help the company achieve a $35,000 base price without including those asterisk factors.

This seems to be a case of Tesla learning how to do more with less. As we reported at the end of January, the automaker expects to increase deliveries by as much as 65 percent in 2019, thanks to Model 3 sales beginning in China and Europe.

If Tesla can continue to make a profit this year, as it did in the third and fourth quarters of 2018, the company may be in a position to hire back at least some of its cut workforce.

Tesla Model 3 barrels through the snow in Track Mode

See all photos
Manuel Carrillo III Automotive Reviews Editor
A Porsche 911 S brought Manuel Carrillo III home from the hospital after he was born, so it's no surprise his lifelong trajectory has centered on cars, leading him to a robust career creating rich automotive media for publications prior to joining CNET.

The Southern California native briefly lived in Sydney, and is proud to have developed a barely passable Aussie accent. He also serves on the board of directors of the Motor Press Guild. When not reviewing cars or nerding out on OEM premium audio, you can find manual-labor-averse Manuel doing his best to convince his closest friends to fix the very Porsche that delivered him home.
Manuel Carrillo III
A Porsche 911 S brought Manuel Carrillo III home from the hospital after he was born, so it's no surprise his lifelong trajectory has centered on cars, leading him to a robust career creating rich automotive media for publications prior to joining CNET.

The Southern California native briefly lived in Sydney, and is proud to have developed a barely passable Aussie accent. He also serves on the board of directors of the Motor Press Guild. When not reviewing cars or nerding out on OEM premium audio, you can find manual-labor-averse Manuel doing his best to convince his closest friends to fix the very Porsche that delivered him home.

Article updated on February 7, 2019 at 3:06 PM PST

Our Experts

Written by 
Manuel Carrillo III
CNET staff -- not advertisers, partners or business interests -- determine how we review the products and services we cover. If you buy through our links, we may get paid. Reviews ethics statement
Manuel Carrillo III Automotive Reviews Editor
A Porsche 911 S brought Manuel Carrillo III home from the hospital after he was born, so it's no surprise his lifelong trajectory has centered on cars, leading him to a robust career creating rich automotive media for publications prior to joining CNET.

The Southern California native briefly lived in Sydney, and is proud to have developed a barely passable Aussie accent. He also serves on the board of directors of the Motor Press Guild. When not reviewing cars or nerding out on OEM premium audio, you can find manual-labor-averse Manuel doing his best to convince his closest friends to fix the very Porsche that delivered him home.
Why You Can Trust CNET
174175176177178179180+
Experts Interviewed
030405060708091011121314+
Companies Reviewed
108109110111112113+
Products Reviewed

We thoroughly evaluate each company and product we review and ensure our stories meet our high editorial standards.