Photo: Tesla
Tesla’s Elon Musk has recently said that his company would be reducing its salaried headcount by 10 per cent in an attempt to cut costs. Now we find out the layoffs continue at the electric vehicle company and they are not restricted to salaried employees after all.
According to a Bloomberg report, Tesla is now eliminating about 200 jobs as a result of closing its office in San Mateo, California.
The targeted facility’s employees were working on Tesla’s Autopilot team and their job was to evaluate customer vehicle data related to the driver-assistance features and to perform data labeling. So basically, their job was to improve the EV company’s driver assistance systems.
Most of the 200 people who were made redundant were hourly workers, which is quite surprising considering that Tesla previously stated that headcount reductions were aimed at salaried positions, and Elon Musk even presented a plan to boost hourly jobs.
Before these job cuts, the California-based facility had about 350 people in its employ, but some had already been moved to the facility in Palo Alto, California.
In the last few years, Tesla increased its headcount to roughly 100,000 employees globally, but it seems things are starting to change, as the EV company has decided to trim its ranks. In a declaration earlier this month, Musk explained that the increasingly unstable economic environment means layoffs are necessary. Until now, the company's layoffs affected areas that grew too quickly and they included human resources workers and software engineers, but also newer employees that haven’t been with the company for too long.
Tesla did not release any comment on this recent report. However, it’s worth mentioning that Tesla’s shares fell 3.8% on Wednesday in New York. Also, the stock saw a 34% decrease this year through Tuesday’s close, compared with a 20% decline in the SP 500 Index.
The targeted facility’s employees were working on Tesla’s Autopilot team and their job was to evaluate customer vehicle data related to the driver-assistance features and to perform data labeling. So basically, their job was to improve the EV company’s driver assistance systems.
Most of the 200 people who were made redundant were hourly workers, which is quite surprising considering that Tesla previously stated that headcount reductions were aimed at salaried positions, and Elon Musk even presented a plan to boost hourly jobs.
Before these job cuts, the California-based facility had about 350 people in its employ, but some had already been moved to the facility in Palo Alto, California.
In the last few years, Tesla increased its headcount to roughly 100,000 employees globally, but it seems things are starting to change, as the EV company has decided to trim its ranks. In a declaration earlier this month, Musk explained that the increasingly unstable economic environment means layoffs are necessary. Until now, the company's layoffs affected areas that grew too quickly and they included human resources workers and software engineers, but also newer employees that haven’t been with the company for too long.
Tesla did not release any comment on this recent report. However, it’s worth mentioning that Tesla’s shares fell 3.8% on Wednesday in New York. Also, the stock saw a 34% decrease this year through Tuesday’s close, compared with a 20% decline in the SP 500 Index.
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