Tesla lays off more staff in software, service teams, says report

Tesla said last month that it was reducing its global workforce by more than 10 per cent. PHOTO: AFP

BENGALURU – Electric vehicle (EV) maker Tesla has laid off staff from the software, service and engineering departments, tech publication Electrek reported on May 6, citing sources familiar with the matter.

The move comes after the Mr Elon Musk-led automaker disbanded its EV charging department following Tesla’s announcement in April that it was reducing its global workforce by more than 10 per cent.

Employees at the automaker received e-mails at the weekend as part of broader layoffs, according to the Electrek report.

The company disclosed in notices in April that it will lay off more than 6,700 employees across its locations in Texas, California, Nevada and New York.

Tesla has been under pressure from dropping sales and an intensifying price war among automakers as elevated interest rates have slowed the adoption of electric vehicles.

The company is looking to focus on autonomous driving software, robotaxis and its humanoid robot Optimus, and Mr Musk could be cutting its spending on certain teams to preserve cash for those projects, analysts have said.

Tesla disclosed in April that it expects to book more than US$350 million (S$473 million) in costs in the second quarter for the mass layoffs.

The job cuts also included an exodus of top executives, including Mr Drew Baglino, Mr Rohan Patel, Ms Rebecca Tinucci and Mr Daniel Ho.

The company said in April it was working on “new models” that would use its current platforms and production lines – a move that is expected to let it better control capital expenditures. REUTERS

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