Tesla Lays Off More Employees in Software, Service Teams

Tesla layoffs
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Electric carmaker Tesla has reportedly laid off more staff across its software, service, and engineering departments. This follows last month’s announcement of a workforce reduction exceeding 10% and the disbanding of Tesla’s EV charging department.

Sources familiar with the situation informed tech publication Electrek that Tesla employees received layoffs notices over the weekend. Tesla has not yet responded to a request for comment.

In April, Tesla revealed plans to cut over 6,700 jobs in locations like Texas, California, Nevada, and New York. This move reportedly aims to free up cash for projects like autonomous driving software, robotaxis, and the humanoid robot Optimus. Analysts believe these layoffs may be a strategic cost-saving measure to prioritize these newer endeavors.

Last month, Tesla also disclosed incurring over $350 million in costs for the layoffs. The company recently confirmed its focus on developing new models that leverage existing platforms and production lines, potentially leading to better control over capital expenditure.

Also read – Tesla Looking for New Showroom