Tesla is preparing to slash its workforce with significant layoffs, cutting deeply into its operations in the Lone Star State and throughout the Golden State. According to a notice submitted to the Texas Workforce Commission and revealed by FOX San Antonio, the electric vehicle giant will be laying off 2,688 employees at its Austin Gigafactory starting June 14. The reductions will span a 14-day period and are a consequence of a 10% global workforce cut impacting over 10,000 employees.

Fueling concerns amidst local communities, the layoffs are not isolated to Texas, as reported by Forbes. These measures will also affect California, where 3,332 employees across cities including Burbank, Fremont, Lathrop, and Palo Alto will face layoffs during the same period. These numbers reflect a troublesome trend for an industry that has been struggling with various market pressures.

In line with regulatory requirements, Tesla provided the mandatory 60-day notice as stipulated by the Worker Adjustment and Retraining Notification (WARN) Act. This legislation mandates that employees must be notified in advance of mass layoffs or plant closures, this according to the Texas Workforce Commission. None of the employees affected by the forthcoming layoffs are represented by a union.

The information available indicates layoffs at the "Gigafactory" on 1 Tesla Road in southeast Travis County. These layoffs follow a troubling first quarter for Tesla, with vehicle sales decreasing 9% year-over-year. In reaction to the layoffs, Austin City Council Member Vanessa Fuentes expressed concern, obtained by FOX San Antonio, about the implications for local families, stating, "Tesla is one of Austin's largest employers." After reaching out for a response, representatives for Tesla did not immediately return Forbes' requests for comment on the matter.