Tesla announced it would cut 7 percent of the workforce, or 3,150 jobs, in order to reduce expenses for its Model 3 production. In a note posted online, the company also stated it would keep only the most critical contractors and temporary workers and cited expiring tax credits that will make their most affordable vehicle more expensive.

This comes after the company announced it would cut 9 percent of its workforce, or an estimated 3,400 jobs, in June of last year. Tesla stated it grew 30 percent in 2018.

"Just as with GM's announcement, this cut will likely have a trickle down impact on jobs for contractors. That said, as the industry pivots to implement self-driving and energy efficient technology, we'll likely see an increase in job cuts as well as hiring plans at auto makers," said Andrew Challenger, Vice President of global outplacement and executive coaching firm Challenger, Gray & Christmas, Inc.

In 2018, auto makers announced 30,587 job cut plans, 75 percent more than the 17,521 cuts announced in 2017.