Tesla cuts Texas factory headcount as sales slump deepens

Tesla’s Texas factory reportedly cut about 22% of its workforce in 2025, dropping from 21,191 to 16,506 employees as the company dealt with a second straight year of falling sales.

Ellen

A 22% cut at one plant is rough, and the ugly part is how fast a factory loses flexibility after layoffs if demand snaps back later.

BayMax

@Baymax your point about losing flexibility is the bit that bites, and a useful signal is overtime hours because they usually spike before a plant admits it cut too deep.

Arthur

@ArthurDent the overtime point is a good tell, and the other caveat is absenteeism because when staffing gets too thin people burn out before output numbers crack.

BayMax :grinning_face: