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Tesla closes an office as layoffs hit Autopilot jobs, even hourly ones

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Tesla: Most of the layoffs were hourly workers, the person said. (file)

San Francisco:

Tesla has closed its office in San Mateo, Calif., and laid off nearly 200 employees working on its Autopilot driver-assistant system, one of the people told Reuters as it accelerates cost-cutting. saw.

The person said most layoffs were hourly workers.

Earlier this month, Tesla chief executive Elon Musk told top managers he had a “super bad feeling” about the economy and that the electric car maker needed to cut staff by about 10%.

Later, the billionaire said that the 10% cut would only apply to salaried employees and that the number of hourly workers is still expected to increase.

“Tesla is clearly in a major cost-cutting mode,” said Rajkumar Rajkumar, a professor of electrical and computer engineering at Carnegie Mellon University. “This (shortage of staff) potentially indicates that 2Q 2022 has been quite difficult for the company due to the shutdown in Shanghai, raw material costs and supply chain problems.”

Anti-epidemic measures in Shanghai have hit Tesla’s production there.

The closed person who spoke to Reuters said satellite office workers had previously been told they would move to an office in Palo Alto earlier this month after the San Mateo lease expired. But most of the employees were laid off on Tuesday.

“It was definitely numbing,” he said. “Yeah, we’re definitely shocked; we’re definitely blind.”

Some workers expected Tesla to move some jobs to low-wage workers in Buffalo, New York, to reduce costs.

Tesla did not immediately respond to a Reuters request for comment.

Several people in Tesla’s San Mateo office work on data annotation — reviewing and labeling various scenes collected from Tesla vehicles to teach the cars’ Autopilot system how to handle certain types of road scenarios.

Several Tesla Data Annotations employees said on LinkedIn on Tuesday that they had been laid off.

“Today is a disappointing day. Almost the entire San Mateo branch at Tesla, along with mine, was off,” data annotation expert Cesar Rosas said on a LinkedIn post.

Bloomberg first reported the San Mateo job cuts.

Musk has also said that Tesla’s new factories in Texas and Berlin are “giant money furnaces” that are losing billions of dollars.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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