Buffalo, N.Y. (WBEN) - Tesla CEO Elon Musk detailed in a memo sent to employees earlier this week that layoffs were coming for about a tenth of the company's workforce nationwide as it tries to cut costs after reporting dismal first-quarter sales.
The New York State Department of Labor on Wednesday posted a Worker Adjustment and Retraining Notification (WARN) from Tesla, saying the layoffs in Tesla's Gigafactory in South Buffalo will affect around 14% of the workforce. Of the 2,032 workers on staff at the factory, 285 people will be let go effective July 15.
To break it down further, of the 285 workers set to be laid off, 280 of them come from the plant located at 1339 South Park Avenue. The other five workers set to be laid off are from Tesla’s gallery and service center across the street at 1216 South Park Avenue. The new facility just opened earlier this year and employs seven people in total.
"I am deeply concerned about Tesla’s significant layoffs at its factory in South Buffalo," said State Sen. Sean Ryan in a statement on Wednesday. "Tesla is contractually obligated to meet specific employment targets. While Tesla is still above its employment benchmark agreement with New York State at this time, New York State should be prepared to impose fines on the company if layoffs continue. I will continue to monitor this situation and will do my part to ensure Tesla is held to the commitment it has made to Buffalo."
The layoffs could affect about 14,000 of the 140,473 workers employed nationwide by the end of the year.
Tesla sales fell sharply last quarter as competition increased worldwide, electric vehicle sales growth slowed, and price cuts failed to draw more buyers. The company said it delivered 386,810 vehicles from January through March, nearly 9% below the 423,000 it sold in the same quarter of last year.
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