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Tesla told employees Tuesday it would close its San Mateo, Calif., Office, and cut 200 jobs there as part of the electric vehicle maker’s efforts to reduce its workforce to save money.
San Mateo office staff had contributed to the improvement of Tesla’s advanced driver assistance system, or Autopilot. According to people familiar with the matter, more than half of the employees of this office received a notification that their jobs were being eliminated. The rest of the employees will be moved to another office, according to the Wall Street Journal.
A Tesla charging station in a Tesla showroom includes the manufacturer’s logo. (Christophe Gateau / photo alliance via Getty Images / Getty Images)
Bloomberg previously reported on Tesla’s plan to close the facility. Most of the eliminated jobs were filled by hourly workers, although CEO Elon Musk said in an interview last week that he plans to add hourly workers but cut 10% of salaried staff.
The move comes after Musk warned he had a “super bad feeling” about the economy. Reuters reported that Musk told his executives to “pause all hiring around the world.” Musk’s directive comes amid growing concerns about a possible recession.
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A Tesla vehicle passes a Tesla factory. (REUTERS / Stephen Lam / Reuters Photos)
Musk recently said Tesla’s new factories in Texas and Germany were losing “billions of dollars,” in part because of supply chain problems affecting the company’s ability to increase production at every turn. installation.
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“Both the Berlin and Austin factories are giant money kilns right now,” Musk said at the time. “It should be like a giant noise that is the sound of money on fire.”
Elon Musk attends the Metropolitan Museum of Art Costume Institute’s charity gala celebrating the opening of the “In America: An Anthology of Fashion” exhibition on May 2 in New York. (Evan Agostini / Invision / AP / AP Newsroom)
Supply chain failures since the beginning of COVID-19 two years ago they have been especially debilitating for carmakers, who get parts from all over the world. The lack of computer chips needed to run car computers exacerbated the problems of carmakers and skyrocketed the prices of new and used cars.
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Recently, Tesla raised prices widely in its car fleet and the company’s shares have lost 38% of their value in less than three months.
According to SEC data, Tesla and its subsidiaries employed nearly 100,000 people by the end of 2021.