Tesla’s Texas factory workforce reportedly shrunk 22% in 2025

Tesla's manufacturing hub near Austin, Texas, has experienced a significant reduction in its workforce, with numbers plummeting by 22% over the past year. According to a compliance report highlighted by the Austin American-Statesman, the factory's employee count fell from 21,191 in 2024 to just 16,506 in 2025. This workforce decline comes as Tesla grapples with its second consecutive year of falling sales. Interestingly, while the Austin facility has seen job cuts, Tesla's overall global staff has increased from 125,665 in 2024 to 134,785 in 2025, as per filings with the U.S. Securities and Exchange Commission. The specific departments impacted by these layoffs remain unclear. Since its inception in 2022, Tesla's factory has emerged as a major employer in the Austin region, further solidified when CEO Elon Musk moved the company’s headquarters to Texas in 2021. The company has poured over $6.3 billion into the factory, underscoring its commitment to the area, despite the recent workforce adjustments.