Tesla Lays off Software, Engineering, and Service Department Employees Over Email
Within a month of announcing the planned layoffs of 10% of its global workforce, Tesla has laid off employees in its software, engineering, and service departments. According to reports, the layoffs were announced over an email. Learn more about the layoffs.
- Within a month of announcing the planned layoffs of 10% of its global workforce, Tesla has laid off employees in its software, engineering, and service departments.
- The layoffs come after the company disbanded its electric vehicle charging department following last month’s announcement.
- This article delves deeper into the Tesla layoffs.
A month ago, electric vehicle (EV) maker Tesla announced it would lay off 10% of its global workforce. Now, according to the latest reports, the company has laid off employees from its software, engineering, and service departments. Among the layoffs were a New Jersey-based Indian techie promoted in April and her entire team. According to an Elektrek report, the employees received emails as part of broader layoffs.
The layoffs come after the EV maker disbanded its electric vehicle charging department following last month’s announcement. In its notice, the company had also cited that it would remove over 6,700 employees across Texas, Nevada, California, and New York.
The company was already under pressure for multiple reasons, such as slowing sales growth, falling share value, and competitors, especially from China. Following last month’s announcement, Tesla’s stocks closed down by over 5%. Interestingly, post-layoffs this week, the shares were up by over 1%.
See more: Tech Layoffs Continue, eBay Plans To Cut 9% of Full-Time Workforce
At this point, it seems that Tesla is focusing on robotaxis, autonomous driving software, and its humanoid robot Optimus. Tesla’s CEO, Elon Musk, may also be reducing expenditures on some of Tesla’s teams to use the cash for these projects.
The company also disclosed in April that it expected to book over $300 million in costs for the mass layoffs during Q2 of 2024. The company also witnessed top executives like Rohan Patel, Daniel Ho, Rebecca Tinucci, and Drew Baglino quit voluntarily.
Tesla hasn’t yet made a public statement regarding these layoffs.
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