According to the US media reports, Electric vehicle maker, Tesla is closing its office in San Mateo, California.
Estimated job cuts are nearly 200 as part of a broader cost-cutting effort. The employees involved reportedly worked on the analysis of data from the vehicles’ autopilot driver assistance system.
Tesla CEO Elon Musk said in an interview that Tesla’s new factories in Texas and Berlin were losing “billions of dollars” partly due to supply chain disruptions that were hampering the company’s ability to increase production in both facilities.
Musk said in the interview, “Both Berlin and Austin factories are gigantic money furnaces right now. It should be like a giant roaring sound which is the sound of money on fire.”
Earlier, Elon Musk said that Tesla will reduce its salaried workforce by 10 percent over the next three months.
At the end of 2021, Tesla employs more than 100,000 people across its facilities and saw over 40 per cent increase in the company’s workforce last year.
Last week started another wave of layoffs, including hourly workers instead of just salaried employees. Earlier, Musk told Tesla executives in an email that they need to cut 10 percent of the workforce and pause hiring due to having a “super bad feeling” about the economy.
Musk has also said that he believes the US is headed for a recession. He also told Tesla staff that “remote work is no longer acceptable,” requiring salaried employees to return to the office and work a minimum of 40 hours a week.
Later, Musk decided to clarify the Tesla layoffs in an email to all employees. He even stated that “hourly headcount will increase”.
