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Tesla is laying off 285 employees in Buffalo, New York as part of a broad restructuring

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Tesla is laying off 285 employees in Buffalo, New York as part of a broad restructuring

Vehicles sit parked outside the Tesla Inc. solar panel factory in Buffalo, New York, U.S., on Wednesday, Dec. 26, 2018.

Andrew Harrer | Bloomberg | Getty Images

Tesla is laying off 285 employees in the state of New York as part of a broader restructuring according to a WARN notice filed in the state. Most of these employees worked at the company’s Buffalo factory and a handful at a store and service center in the area per the filing.

Earlier this week, Tesla CEO Elon Musk sent a company-wide memo saying that the automaker would be reducing more than 10% of its global workforce. Few details have been shared by Tesla about the layoffs beyond that leaked memo which said the reduction in workforce would help, “prepare the company” for a “next phase of growth.”

The layoffs disclosed in Buffalo comprise a 14% reduction in headcount there.

Tesla took over the Buffalo factory after they completed a $2.6 billion acquisition of solar installer SolarCity in 2017.

The acquisition of SolarCity by Tesla was widely criticized as a bailout for an ailing solar business with deep ties to the Tesla CEO and board. Musk funded and co-founded SolarCity with his cousins, Lyndon and Peter Rive, and served as chairman there. Another Musk company, SpaceX, had purchased SolarCity bonds and if the company had gone bankrupt, they would have lost their investment as well.

Empire state taxpayers doled out around $1 billion to build the Buffalo factory, including equipment purchases, hoping to support the creation of thousands of high-tech jobs in the region. While Tesla said it would manufacture solar panels at the Buffalo factory, its efforts to grow its solar business have faltered through the years.

In 2023, solar deployments by Tesla declined to a total of 223 megawatts, down 36% from 348 megawatts in the previous year. That represented the lowest level of solar deployments for Tesla since 2020 when they reported 205 megawatts.

Tesla’s energy division still generates most of its revenue through sales of backup batteries, also known as battery energy storage systems, which are used in residential, business and utility-scale projects.

Instead of manufacturing solar panels as their primary business in Buffalo, Tesla assembles Supercharger equipment there and moved part of its Autopilot data labeling team there previously. The company has also told shareholders it would build supercomputer hardware in Buffalo.

Early this month, Reuters reported that Tesla would be focusing efforts on robotaxi technology and scrapping plans to produce a more affordable EV.

On Tuesday afternoon, Musk wrote in a post on his social network X that he is “not quite betting the company, but going balls to the wall for autonomy.”

Tesla has not yet said whether the company will stick with its 2023 “master plan,” which laid out “a proposed path to reach a sustainable global energy economy through end-use electrification and sustainable electricity generation and storage.”

Tesla plans to discuss first-quarter results with shareholders on April 23, and executives are expected to reveal more about the restructuring and strategy going forward then.

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Google workers arrested after nine-hour protest in cloud chief’s office

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Google workers arrested after nine-hour protest in cloud chief's office

Nine Google workers were arrested on trespassing charges Tuesday night after staging a sit-in at the company’s offices in New York and Sunnyvale, California, including a protest in Google Cloud CEO Thomas Kurian’s office.

The arrests, which were livestreamed on Twitch by participants, follow rallies outside Google offices in New York, Sunnyvale and Seattle, which attracted hundreds of attendees, according to workers involved. The protests, led by the “No Tech for Apartheid” organization, focused on Project Nimbus — Google and Amazon’s joint $1.2 billion contract to provide the Israeli government and military with cloud computing services, including artificial intelligence tools, data centers and other cloud infrastructure.

Protesters in Sunnyvale sat in Kurian’s office for more than nine hours until their arrests, writing demands on Kurian’s whiteboard and wearing shirts that read “Googler against genocide.” In New York, protesters sat in a three-floor common space. Five workers from Sunnyvale and four from New York were arrested.

“On a personal level, I am opposed to Google taking any military contracts — no matter which government they’re with or what exactly the contract is about,” Cheyne Anderson, a Google Cloud software engineer based in Washington, told CNBC. “And I hold that opinion because Google is an international company and no matter which military it’s with, there are always going to be people on the receiving end… represented in Google’s employee base and also our user base.” Anderson had flown to Sunnyvale for the protest in Kurian’s office and was one of the workers arrested Tuesday.

“Google Cloud supports numerous governments around the world in countries where we operate, including the Israeli government, with our generally available cloud computing services,” a Google spokesperson told CNBC, adding, “This work is not directed at highly sensitive, classified, or military workloads relevant to weapons or intelligence services.”

The demonstrations show Google’s increased pressure from workers who oppose military use of its AI and cloud technology. Last month, Google Cloud engineer Eddie Hatfield interrupted a keynote speech from the managing director of Google’s Israel business stating, “I refuse to build technology that powers genocide.” Hatfield was subsequently fired. That same week, an internal Google employee message board was shut down after staffers posted comments about the company’s Israeli military contracts. A spokesperson at the time described the posts as “divisive content that is disruptive to our workplace.”

On Oct. 7, Hamas carried out deadly attacks on Israel, killing 1,200 and taking more than 240 hostages.  The following day, Israel declared war and began implementing a siege of Gaza, cutting off access to power, food, water and fuel. At least 33,899 people have been killed in the Gaza Strip since that date, the enclave’s Health Ministry said Wednesday in a statement on Telegram. In January at the U.N.’s top court, Israel rejected genocide charges brought by South Africa.

The Israeli Ministry of Defense reportedly sought consulting services from Google to expand its access to Google Cloud services. Google Photos is one platform used by the Israeli government to conduct surveillance in Gaza, according to The New York Times.

“I think what happened yesterday is evidence that Google’s attempts to suppress all of the voices of opposition to this contract are not only not working but actually having the opposite effect,” Ariel Koren, a former Google employee who resigned in 2022 after leading efforts to oppose the Project Nimbus contract, told CNBC. “It’s really just creating more agitation, more anger and more commitment.”

The New York sit-in started at noon ET and ended around 9:30 p.m. ET. Security asked workers to remove their banner, which spanned two floors, about an hour into the protest, according to Hasan Ibraheem, a Google software engineer based in New York City and one of the arrested workers.

“I realized, ‘Oh, the place that I work at is very complicit and aiding in this genocide — I have a responsibility to act against it,”” Hasan Ibraheem, a Google software engineer based in New York City, told CNBC. Ibraheem added, “The fact that I am receiving money from Google and Israel is paying Google — I am receiving part of that money, and that weighed very heavily on me.”

The New York workers were released from the police station after about four hours.

The nine arrested workers in New York and Sunnyvale told CNBC that, during the protest, they were locked out of their work accounts and offices, placed on administrative leave, and told to wait to return to work until being contacted by HR.

The workers were also protesting their labor conditions — namely “that the company stop the harassment, intimidation, bullying, silencing, and censorship of Palestinian, Arab, Muslim Googlers — and that the company address the health and safety crisis workers, especially those in Google Cloud, are facing due to the potential impacts of their work,” according to a release by the campaign.

“A small number of employee protesters entered and disrupted a couple of our locations,” a Google spokesperson told CNBC. “Physically impeding other employees’ work and preventing them from accessing our facilities is a clear violation of our policies, and we will investigate and take action. These employees were put on administrative leave and their access to our systems was cut. After refusing multiple requests to leave the premises, law enforcement was engaged to remove them to ensure office safety.”

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Google restructures finance team as part of AI shift, CFO tells employees in memo

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Google restructures finance team as part of AI shift, CFO tells employees in memo

Alphabet Chief Financial Officer Ruth Porat.

Adam Galica | CNBC

Alphabet Chief Financial Officer Ruth Porat said in a memo Wednesday that Google is restructuring its finance organization, a move that will include layoffs and relocations, as the company pushes resources to favor investments in artificial intelligence.

“The tech sector is in the midst of a tremendous platform shift with Al,” Porat wrote in the memo, obtained by CNBC, that was sent to employees in finance. “As a company, this means we have the opportunity to make more helpful products for billions of users and provide faster solutions to our customers, but it also means we collectively have to make tough decisions, including how and where we work to align with our highest priority areas.”

The latest cuts follow a broader effort by Google to rearrange its workforce and resources to accommodate further investment in new technologies such as AI as advertising growth slows. CEO Sundar Pichai told employees in January that more job cuts were likely coming in 2024, though he did not specify which teams would be affected.

The restructuring will affect finance teams domestically and abroad, including in the Asia-Pacific region and Europe, the Middle East and Africa, Porat noted. 

Porat also wrote that the company would create “hubs” for more centralized operations including in Bangalore, Mexico City, Dublin, Chicago and Atlanta. The company plans to maintain a significant presence in the San Francisco Bay Area, she noted.

“Over the past year, we have talked about creating hubs of Fin’ooglers around the world that are vibrant and have a strong culture,” Porat wrote. “This strategy will help us be a more efficient organization and enables us to run 24 hours a day while respecting Fin’ooglers worktimes.”

Fin’oogler is the company’s term for a Google employee in finance.

Porat ended her note saying, “We are sad to say goodbye to some talented teammates and friends we care about, and we know this change is difficult.”

“As we’ve said, we’re responsibly investing in our company’s biggest priorities and the significant opportunities ahead,” a Google spokesperson told CNBC in an email. “To best position us for these opportunities, throughout the second half of 2023 and into 2024, a number of our teams made changes to become more efficient and work better, remove layers and align their resources to their biggest product priorities.”

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