Reuters reported on the 28th that the U.S. company Tesla closed its division in San Mateo, California, laying off about 200 employees.
People familiar with the matter said the business of the laid-off employees was Tesla's Autopilot assisted driving system, most of whom were hourly-paid employees.
The layoffs are seen as part of Tesla's efforts to accelerate cost-cutting efforts, the report said. Earlier this month, Tesla CEO Elon Musk told senior management that he felt "super bad" about the U.S. economy and that Tesla needed to lay off about 10 percent of its workforce. Musk then said that the 10 percent layoffs were only for employees who receive a monthly salary, while the number of employees who receive an hourly wage is expected to increase.
Reuters reported that many of Tesla's employees who were laid off were engaged in data labeling. This job is responsible for reviewing and labeling the visual data collected by Tesla cars. This information is used to train the Tesla Autopilot system, so that it learns to cope with different road conditions.
Data labeling professional Cassel Rosa wrote on the Collage website, "Today was a disappointing day. Myself and almost the entire San Mateo department just got laid off."
Reg Rajkumar, a professor of electrical and computer engineering at Carnegie Mellon University, said, "Tesla is clearly in a significant cost-cutting mode. This layoff may indicate that the second quarter of this year was quite difficult for Tesla."
Musk said in March that both Tesla and Space Exploration Technologies, another business he founded, are facing significant inflationary pressures, mainly in raw materials and logistics.
On the other hand, Musk previously spouted that the new factories in Texas and Berlin, Germany, were both too capable of burning through money and generating huge losses.