Surprisingly, the majority of those laid off were hourly workers, according to the people who asked not to be identified because they were discussing private information. Elon Musk, the company’s CEO, recently announced plans to cut 10% of its salaried workforce while increasing hourly positions.
Tesla Inc. shut down a California facility, according to people familiar with the situation, as the electric automaker laid off hundreds of employees from its Autopilot team.
Surprisingly, the majority of those laid off were hourly workers, according to the people who did not want to discuss personal information. Even as recently as last week, Chief Executive Officer Elon Musk outlined a plan to cut 10% of salaried employees while increasing hourly jobs.
Teams from the San Mateo office were tasked with analysing and labelling customer vehicle data related to Autopilot driver-assistance features. According to one of the sources, many of the employees are data annotation specialists who work on an hourly basis.
According to the people, approximately 200 workers were laid off. Prior to the layoffs, the office employed approximately 350 people, some of whom had already been transferred to a nearby facility in recent weeks.
Tesla is reducing its workforce following a hiring spree in recent years. As it built new factories in Austin and Berlin, the company, now based in Austin, Texas, had grown to approximately 100,000 employees worldwide.
Musk surprised employees earlier this month when he announced that layoffs would be necessary due to the increasingly volatile economic environment. In an interview with Bloomberg, he clarified that approximately 10% of salaried workers will lose their jobs in the next three months, though the total workforce could be higher in a year.
The EV market leader’s downsizing efforts have concentrated on rapidly growing areas. Some human resources employees and software engineers have been laid off, and in some cases, the layoffs have affected employees who have only been with the company for a few weeks.