Tesla's Texas Gigafactory Workforce Shrank 22% in 2025 Amid Second Straight Year of Declining Sales

Tesla's workforce at its Texas Gigafactory fell from 21,191 workers to 16,506 workers in 2025, a reduction of approximately 22 percent, according to a report cited The headcount reduction at the Austin facility reflects broader cost-cutting measures Tesla has implemented across its operations as pressure on its core automotive business has intensified. The company has faced declining demand in key markets including Europe and China, increased competition from Tesla reported its first annual sales decline in 2024 and followed with another down year in 2025. The company has responded The Texas Gigafactory, known as Giga Texas, produces the Model Y and Cybertruck and was intended to be one of the most efficient vehicle manufacturing facilities in the world. A 22 percent reduction in headcount there suggests production volumes have not met original projections, or that automation has displaced workers at a faster rate than expected. TechCrunch noted that TechCrunch's final quarter EV sales data shows Tesla reclaimed the global quarterly EV crown from