The overall workforce at Tesla’s plant outside Austin, Texas, shrank dramatically last year as the company suffered a second straight year of declining sales, according to a compliance report discovered by the Austin American-Statesman.
Tesla will reduce its factory workforce by 22% from 21,191 employees in 2024 to 16,506 in 2025. That’s despite the company’s global workforce growing from 125,665 in 2024 to 134,785 in 2025, according to filings with the Securities and Exchange Commission.
It’s unclear which teams have been most affected by Tesla’s downsizing of its factory workforce. But the company has become one of the largest employers in the Austin area since opening the plant in 2022. CEO Elon Musk also moved Tesla’s headquarters to the factory in 2021 before it opened. The company has invested more than $6.3 billion in the facility to date, according to a new report.
