BUFFALO, N.Y. — Company-wide layoffs at Tesla will impact several employees at its South Buffalo facility. 7 News has learned 285 people are set to be laid off at Tesla facilities here in Western New York.
According to a WARN notice from the Department of Labor, Tesla will lay off 285 of its 2,032 employees in South Buffalo. That represents roughly 14 percent of its local workforce
Most of those cuts, 280, are coming at the Gigafactory on South Park Avenue.
Five additional cuts are coming from the gallery and service center across the street that has not yet opened.
These layoffs leave 1,747 workers here in Buffalo. On Monday, Tesla announced it was cutting more than 10 percent of its global staff of 140,000.
Monday, 7 News had learned employees were notified they lost their jobs by email.
Former Tesla data analyst Jasmine Main contacted our newsroom after she received an email Sunday, informing her that her last day of work was Sunday, April 14.
“At 4:50 this morning, I got an email saying I’m no longer part of the company,” Jasmine said. “One of my teammates messaged me on Instagram, they said check your email. Tried checking my work email, work email was locked. I was confused, so I checked my personal email.”
In the email to Jasmine, Tesla wrote "over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth there has been duplication of roles and job functions in certain areas. As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity."
The email continues, "Unfortunately as a result, your position has been eliminated by this restructuring."
She tells 7 News she received no phone call, no meeting, just a single email a few hours before her shift that she was laid off.
“There is better ways to tell people this. There is better ways to relay news like this.
This appears to be part of a larger cost-cutting effort across the company. The Associated Press reports Tesla is planning to lay off about a tenth of its workforce, following dismal first-quarter sales.
The Gigafactory here in South Buffalo opened in 2017 after New York State spent $959 million to lure Elon Musk here.
As part of that deal, Telsa leases the facility for $1 a year until 2027 in exchange for keeping at least 1,460 jobs in Buffalo.
New York State Senator Sean Ryan released the following statement in response to the news:
“I am deeply concerned about Tesla’s significant layoffs at its factory in South Buffalo. 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.”
7 News reached out to Tesla and has not received a response.
According to the AP, Tesla sales fell sharply late last year, as competition increased worldwide, electric vehicle sales growth slowed, and price cuts failed to attract 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," as reported by the AP.
This comes nearly six months after 7 News uncovered health concerns inside Tesla's South Buffalo facility. Employees reached out about bed bug outbreak in the building. You can more reporter Derek Heid's report here.
