Tesla lays off 200 hourly workers as it closes its California office

By Akshay Kedari  | Date: 2022-06-30

Tesla lays off 200 hourly workers as it closes its California office

Tesla Inc. reportedly closed its San Mateo, California office to expedite cost-cutting and has let go nearly 200 workers who functioned on its autopilot driver-assistant system. Most of these employees were compensated on an hourly basis.

Earlier this month, Tesla CEO Elon Musk had stated that he had a negative impression of the economic climate and hinted at reducing its workforce by 10% as a direct consequence of the temporary lockdown initiated by a resurgence in COVID-19 cases in Shanghai.

He subsequently modified his assertion and revealed that the cutbacks would only pertain to salaried employees. He explicitly noted that the number of hourly personnel would be expected to elevate in the coming times.

According to seasoned experts, the firm's substantial cost-cutting phase is a clear indication that the second quarter of this year was not easy for them given the skyrocketing raw material costs and supply chain challenges.

One of the employees who was asked to leave stated that the decision came as a complete surprise to them, as Tesla had previously informed them that they would be relocated to the Palo Alto office in stages after the lease on its California office expired.

Some even predicted that the tech behemoth would consider moving them to lower-wage jobs in Buffalo, New York, to save finances.

It is worth noting that a sizable number of staff at Tesla's San Mateo office used to work on data annotation, where they were obliged to evaluate and label the visuals accumulated from the company to be able to educate the cars’ autopilot system to withstand specific types of road scenarios.

With Musk previously referring to the new factories in Berlin and Texas as "giant money furnaces," it is likely that they could very well experience a similar situation in the future.

Source credits –

https://money.usnews.com/investing/news/articles/2022-06-29/tesla-closes-an-office-as-layoff-hits-autopilot-jobs-including-hourly-ones

About Author

Akshay Kedari     aeresearch.net

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More >>

More News By Akshay Kedari

Federal Reserve increases interest rates amidst US banks’ failure

Federal Reserve increases interest rates amidst US banks’ failure

By Akshay Kedari

Despite the instability in the global financial market, the U.S. central bank has hiked its interest rates once again. The Federal Reserve has reportedly increased its rate by 0.25 percentage points. While the institution has warned other banks that ...

Apple delays employee bonuses, stops hiring amid cost-cutting efforts

Apple delays employee bonuses, stops hiring amid cost-cutting efforts

By Akshay Kedari

Apple has reportedly decided to delay the bonuses of certain divisions, alongside a halt on new hiring as part of its efforts to cut back costs. With this move, the firm joins its peers in Silicon Valley in trying to optimize workload during tough ti...

China focuses on growth of renewable energy usage amid coal boom

China focuses on growth of renewable energy usage amid coal boom

By Akshay Kedari

China is making rapid progress in limiting the emission of carbon by focusing on the expansion of renewable energy. According to the Global Energy Monitor, in 2022, China has approved its highest number of new coal-fired plants since 2015. This ha...

China factories expand production, record fastest pace in the decade

China factories expand production, record fastest pace in the decade

By Akshay Kedari

China’s manufacturing activity has reportedly shown rapid growth at the fastest pace of the decade, following the lifting of the COVID-19 restrictions in late 2022. The country’s official purchasing managers’ index (PMI) rose to 52....

Amazon employees sound off on recent work from office policy

Amazon employees sound off on recent work from office policy

By Akshay Kedari

Amazon employees have reportedly expressed disagreement about the company recent mandates asking employees to return to office for work. This included the spamming of an internal website with messages of opposition against the new policy. An inter...