publive-image

Tesla Announces Layoffs in Software and Service Divisions: Streamlining Operations Amidst Strategic Shift

Electric car maker Tesla has laid off employees in its software, services, and engineering departments, technology publication Electrek reported Monday, citing sources familiar with the matter.

The move comes after the Elon Musk-led automaker dismantled its EV charging division after Tesla announced last month that it was cutting its global workforce by more than 10%.

According to the Electrek report, the automaker's employees received the emails over the weekend as part of a larger layoff.

Tesla, whose shares rose more than 1%, did not immediately respond to a Reuters request for comment.

The company disclosed in reports last month that it would layoffs more than 6,700 workers in locations including Texas, California, Nevada, and New York.

Tesla is under pressure from falling sales, and an ongoing price war among automakers as rising interest rates have slowed the uptake of electric cars.

The company is looking to focus on autonomous driving software, Robotaxis, and its humanoid robot, Optimus. Musk may be cutting spending on specific units to save money for those projects, researchers said.

Tesla revealed last month that it expects to write off more than $350 million in mass layoff costs in the second quarter. The activists also included departing executives, including Drew Baglino, Rohan Patel, Rebecca Tinucci, and Daniel Ho.

The company said in April it was working on a “new model” that would use its current platforms and production lines, a move expected to improve capital cost management.

Conclusion: As Tesla navigates this period of change, it reaffirms its dedication to maintaining the highest levels of quality and customer satisfaction. With a diversified portfolio of electric vehicles and energy solutions, Tesla remains at the forefront of the automotive industry, poised to shape the future of transportation.