Houston hit hard by Tesla’s move to layoff 10% of workforce

HOUSTON – The nation’s largest electric vehicle manufacturer has let go of roughly 10% of its workforce.

Tesla, headed by Elon Musk, informed workers by email early Monday morning that their positions no longer existed.

“They sent an email saying that my position was no longer needed,” said Jake Shields, who worked as a service technician at the Tesla dealership in Cypress.

In all, thousands of Tesla employees across the country are now out of a job. Many of the cuts include employees at the company’s headquarters and Gigafactory in Austin as well as service centers throughout the Houston area.

SEE ALSO: Who’s about to lose their job in Houston? Understanding the WARN Act

One ex-Tesla employee shared their termination notice with KPRC 2 in confidentiality.

“As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount globally. Unfortunately as a result, your position has been eliminated by this restructuring,” said the email in part.

This employee received their termination notice Monday morning at 2:47 a.m. CT. They tell KPRC2′s Gage Goulding that they showed up to work only to find they’d been locked out of the building and all Tesla systems.

They’re not the only ones. Shields also go the email in the middle of the night Monday morning.

Gage: “Were are you disappointed. Were you let down?”

Jake: “Super disappointed. But, I mean, there’s nothing I can do about it.”

Elon Musk commented on the layoffs on X, formerly Twitter, the social media platform he bought in 2022. Tesla’s CEO saying the organizational overhaul is done every five years to help the company grow.

Houston-area employees say they were never given a notice about the upcoming layoffs.

Gage: “Was there any like inkling or sign that There was about to be a mass layoff? [12:11:53][10.4]

Jake: “I say work wise, I’ve seen that coming because the work kind of dwindled down. It was hard to find work, consistent work. It just wasn’t there anymore. I say I seen it coming because of that. But other than that, no.”

According to the Department of Labor, a WARN Notice is required to be given to employees if the company conducts “a mass layoff affecting at least 50 employees and 1/3 of the worksite’s total workforce or 500 or more employees at the single site of employment during any 90-day period.”

If a WARN Notice is given, the company must provide a 60-day notice. Tesla did just that with employees at a facility in Buffalo, New York.

A search of Texas WARN Notice records doesn’t show any filings by Tesla.

A spokesperson for the Texas Workforce Commission sent the following statement to KPRC 2:

“TWC does not currently have a WARN notice on file from Tesla. Regarding WARN notice procedure, please see below:

The Texas Workforce Commission is the state reporting agency for mass layoffs and plant closings in Texas. By the receipt of a WARN notice to TWC, our agency can act quickly to provide Rapid Response Services and minimize the impact to local economies by helping employees to transition to new employment. The WARN Act is administered by the U.S. Department of Labor and does not provide TWC with enforcement authority. Any enforcement action is through the U.S. Federal Court.

Enforcement of WARN requirements is through the United States district courts. Workers, representatives of employees and units of local government may bring individual or class action suits. In any suit, the court, in its discretion, may allow the prevailing party a reasonable attorney’s fee as part of the costs. DOL has no enforcement role in seeking damages for workers who did not receive adequate notice of a layoff or received no notice at all. However, they can assist workers in finding a new job or learning about training opportunities that are available.”

As the saying goes, when one door closes, another opens.

That couldn’t be anymore true for service technicians like Shields. Another local repair shop specializing in electric vehicles is looking to hire some of those let go by Tesla.

“While Tesla’s downsizing a little bit, our company is growing very quickly,” said Cameron Trial, owner of CPR EV Repair in Cypress. “The timing of this was, you know, nothing short of spectacular for for us, honestly. It saves us on a lot of training.”

It’s the kind of opportunity that could help workers like Shields land on their feet.

Gage: “Would that be an opportunity that you’d want to look at?”

Jake: “Definitely something that that would work out perfectly.”

While this might be his silver lining, there are countless other ex-Tesla employees that are going to be left looking for a new job.

Several Tesla employees that were laid off tell KPRC2 that they were offered two months of pay and benefits as part of the severance.

Once that runs out, they’ll be left high and dry.

“I’m not sure what they’re going to do now,” Shields said.

KPRC2 requested comment from Tesla. We have not received a response to our questions.