Tesla has closed its office in San Mateo, California and laid off about 200 employees working on its Autopilot driver assistance system there, one of the people told Reuters, in a move seen as a speeding cut down the costs.
The person said that most of the people who were laid off were hourly workers.
Earlier this month, Tesla CEO Elon Musk told top managers he had a “very bad feeling” about the economy and that the electric carmaker needed to cut staff by about 10 %.
The billionaire then said that the 10% cut would only apply to salaried employees and that the number of hourly employees is still expected to grow.
“Tesla is clearly in a big cost-cutting mode,” said Raj Rajkumar, a professor of electrical and computer engineering at Carnegie Mellon University. “This (staff reductions) could indicate that Q2 2022 the company will face difficulties due to closures in Shanghai, raw material costs and supply chain issues.”
Anti-pandemic measures in Shanghai have slowed Tesla’s production there.
The layoff who spoke to Reuters said employees at the satellite office had previously been told they would move to the Palo Alto office in phases starting this month following the San Mateo lease. expired. But most of the workers were laid off on Tuesday.
“It’s definitely a kind of paralysis,” he said. “Yes, we were certainly shocked; we were certainly blind.”
Some workers expect Tesla to shift some work to lower-wage workers in Buffalo, New York, to save costs.
Tesla did not immediately respond to Reuters’ request for comment.
Many people in Tesla’s San Mateo office work on data annotation – reviewing and labeling different images collected from Tesla vehicles to teach the car’s Autopilot system how to behave. handle certain road situations.
Several employees who annotated Tesla’s data said on LinkedIn on Tuesday that they had been laid off.
“What a disappointing day today. Myself, along with nearly the entire San Mateo Branch at Tesla, have just been laid off,” Ceser Rosas, a data annotation specialist, said in a post. on LinkedIn.
Bloomberg first reported on San Mateo’s job cuts.
Musk has also said that Tesla’s new factories in Texas and Berlin are “huge furnaces” that lose billions of dollars.
(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)