In a fresh round of layoffs, Tesla has parted ways with 200 more employees who were working on the company’s Autopilot driver-assistant system. Additionally, Tesla has shut down its San Mateo, California, office. One of the suspected causes of the recent layoffs is cost-cutting. Elon Musk, CEO of Tesla, recently disclosed that the business will lay off up to 10% of its workers in the upcoming three months.
One of the employees from the group of workers who were laid off reportedly told the news organization about the layoff. He said that hourly workers made up the majority of the lay off people. The employee who was let go also disclosed that the impacted employees at the satellite office had previously been advised that they would gradually relocate to an office in Palo Alto once the San Mateo lease expired starting this month. But on Tuesday, the majority of the employees were let go. It was undoubtedly numbing, he admitted. Yes, we are absolutely astonished and taken off guard.
Musk had informed the employees about the layoffs via email. He said in the email that there will be job cuts and he has a “super bad feeling” about the economy as well. Musk also noted in the email that the company has paused “all hiring worldwide”.
Commenting on Tesla’s recent layoffs, Raj Rajkumar, professor of electrical and computer engineering at Carnegie Mellon University said, “Tesla clearly is in a major cost-cutting mode. This (staff reduction) likely indicates that 2Q 2022 has been pretty rough for the company due to the shutdown in Shanghai, raw material costs and supply chain problems.”
Additionally, Musk had urged the Tesla staff to go back to their offices. However, when they get at work, the staff members face a new kind of horror. When they returned to the workplace after Musk’s severe warning, there was nowhere to sit, no parking spaces, and shoddy wifi that hindered their ability to complete their work. According to a story by The Information, Tesla workers who went back to the company’s facilities in Fremont, California, reported that they had nowhere to sit when they arrived. The personnel were not given a parking spot for their vehicles. Additionally, some people who were able to acquire a work desk had to put up with poor wifi, which hindered their productivity.The situation got so bad that the managers had to ask employees to continue working from home until the logistics got sorted.