Tesla plans to layoff 6,020 employees in California and Texas as the electric-vehicle maker grapples with slowing demand and falling margins, Reuters reported, citing notices filed by the company.

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In California, 3,332 jobs will be trimmed, while 2,688 positions will be eliminated in Texas, according to Reuters.

The newly announced layoffs include job cuts in Austin, Texas, home to Tesla’s headquarters and a major factory, Bloomberg News reported. The cuts will begin in a 14-day period starting June 14, the news site reported, citing a WARN notice filed with the Texas Workforce Commission.

Telsa has manufacturing sites in California, according to the company’s website.

Earlier this month, Tesla announced plans to lay off 10% of its workforce, amounting to about 14,000 jobs, according to The New York Times. In a post on his social media platform X, formerly known as Twitter, Elon Musk said, “About every five years, we need to reorganize and streamline the company for the next phase of growth.”

Last week, WKBW-TV reported that 285 people were being laid off at Tesla facilities in New York, citing a WARN notice from the Department of Labor.

In the first quarter of 2024, Tesla said it delivered about 387,000 vehicles to customers, falling about 13% short of market expectations, The Guardian reported. It marked the first time the company saw a fall in deliveries in nearly four years, according to the newspaper.

As of last year, Tesla employed more than 140,000 people, filings show.

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