WFCN –
Following Elon Musk’s decision to cut thousands of jobs at Tesla’s Texas gigafactory in April, the federal government is stepping in to provide assistance.
A grant of over $1 million was declared by the U.S. Department of Labor to Texas in order to offer job opportunities and training programs for individuals impacted by the recent Tesla workforce reductions in Austin.
The prize represents the initial portion of a federal grant for displaced workers, which could reach a total of $3.2 million for the Texas Workforce Commission. The financial support enables the state to offer training and enhance the abilities of workers who have been displaced in 10 counties in Central Texas, such as Bastrop, Travis, and Williamson counties.
Under a law from 2014 aimed at aiding individuals in finding work, worker grants are allocated to a state or local board to offer financial support for services and aid in regions facing significant economic disruptions that result in a shortage of resources to meet workforce demands.
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At the beginning of the year, Tesla surprised thousands of employees by unexpectedly dismissing over 10 percent of the electric vehicle manufacturer’s workforce through sudden messages, with some being delivered to workers during the late hours of the night.
Upon receiving the notification, certain employees were provided with severance packages that were inaccurately low, for which Musk expressed regret and assured would be rectified. A notice filed in Texas under the Worker Adjustment and Retraining Notification (WARN) Act reported that a total of 2,688 workers in the Austin area were impacted by the large-scale layoff.
Currently, Tesla is actively recruiting, with numerous positions available, including opportunities in Austin and Houston, for the production of battery cells, vehicle maintenance, artificial intelligence, and other areas.
Prior to the job cuts, Governor Greg Abbott commended Tesla’s expansion in Texas, as the car manufacturer surpassed H-E-B to become the biggest private employer in Austin.
Abbott has consistently praised Musk despite his occasionally impulsive business choices. At the beginning of this month, Musk criticized a California regulation that safeguards transgender students from having their identities revealed to their parents. He also revealed intentions to relocate the main offices of the social media platform X and the aerospace company SpaceX to Texas.
“Abbott shared on X that this solidifies Texas as the frontrunner in the realm of space discovery.”