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Tesla told employees on Tuesday that it was closing its office in San Mateo, California, and cutting 200 jobs there as part of an electric vehicle maker’s efforts to reduce its workforce to save money.
The staff at the San Mateo office contributed to the improvement of the advanced Tesla driver or autopilot assistance system. According to people familiar with the matter, more than half of the employees in this office have been informed that their jobs are being laid off. The remaining employees will be moved to another office, according to the Wall Street Journal.
A Tesla charging station in a Tesla showroom has the manufacturer’s logo. (Christophe Gateau / photo union via Getty Images / Getty Images)
Earlier, Bloomberg announced Tesla’s plan to close the facility. Most of the eliminated jobs were filled by part-time workers, although CEO Elon Musk said in an interview last week that he planned to add part-time workers but cut 10% of staff.
The move comes after Musk warned he had a “super bad feeling” about the economy. Reuters reported that Musk had told his executives to “suspend all hiring around the world.” Musk’s directive comes amid growing fears of a possible recession.
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A Tesla car passes a Tesla factory. (Reuters / Stephen Lam / Photos by Reuters)
Musk recently said Tesla’s new plants in Texas and Germany are losing “billions of dollars,” in part because of supply chain problems that are affecting the company’s ability to increase production at each facility.
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“Both the factories in Berlin and Austin are giant money ovens at the moment,” Musk said at the time. “It must be like a huge roar, which is the sound of burning money.”
Elon Musk attended the benefit gala of the Costume Institute of the Metropolitan Museum of Art on the occasion of the opening of the exhibition “In America: An Anthology of Fashion” on May 2 in New York. (Evan Agostini / Invision / AP / AP Newsroom)
Supply chain failures since the beginning of COVID-19 two years ago are particularly exhausting for carmakers who receive parts from all over the globe. The lack of computer chips needed to control cars’ computers has complicated the problems of carmakers and led to a sharp rise in the prices of used and new cars.
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Tesla recently raised prices widely throughout its fleet, and the company’s shares lost 38% of their value in less than three months.
According to the SEC, Tesla and its subsidiaries hired almost 100,000 people at the end of 2021.
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