California fast-food restaurants have seen a significant reduction in their workforce since the implementation of a $20 minimum wage.
According to a recent report from the California Business and Industrial Alliance (CABIA), fast-food restaurants in California have cut approximately 10,000 jobs as a result of the state's new $20 minimum wage.
This move comes as struggling franchises attempt to reduce labor costs and adapt to the increased financial burden imposed by the wage hike.
The trade group criticized Democratic Governor Gavin Newsom for pushing through the law, which went into effect on April 1.
In response to the elevated wages, well-known fast-food chains such as McDonald's, Burger King, and In-N-Out Burger opted to raise their prices.
To decrease the impact of heightened labor expenses, numerous restaurants had no choice but to reduce employee working hours or accelerate the implementation of automated systems.
Tom Manzo, the president and founder of CABIA, expressed concern over the impact of the wage increase on businesses.
He stated that businesses in California have encountered notable difficulties in the past few years and proposed that these laws expose them to even greater risks.
Manzo pointed out that nearly 10,000 jobs have already been lost in the fast-food industry since the legislation was signed into law.
Starbucks raised beverage prices by 50 cents, and Taco Bell increased menu prices by 3%.
Other fast-food chains, such as Fatburger and Chick-fil-A, have also raised their prices in response to the new law.
As a result of the overall increase in prices, a survey conducted by LendingTree found that 78% of consumers now consider fast food to be a luxury purchase due to its higher cost.
The layoffs primarily affect the Texas Gigafactory, where the Cybertruck is manufactured.
Musk, who leads Tesla, stated that the reduction in workforce is necessary to adapt to declining electric car sales and ensure the company's lean and innovative operations for future growth.
Elon Musk, the billionaire in charge of Tesla, the American car company, is planning to cut more than 10% of the company's global workforce due to a decrease in sales.
Musk personally informed his staff about the need for this reduction, stating that they had thoroughly reviewed the organization and made the difficult choice to decrease the number of employees by more than 10% worldwide.
Musk expressed his dislike for this decision but emphasized its importance in making the company more efficient, innovative, and prepared for future growth.
Although some viewers expressed worries about the safety of the Cybertruck and criticized Tesla's design choices, others noted that electric car sales continue to set records each month.
However, increased competition from other automakers has resulted in fewer Teslas being sold per capita.
