Tesla Implements Staff Reductions in Software and Service Teams, Electrek Reports

Tesla has laid off staff from its software, service, and engineering departments. The company disbanded its EV charging department and is reducing its global workforce by over 10%. Employees received emails over the weekend as part of broader layoffs.

This move comes shortly after the company disbanded its EV charging department, following an announcement last month that Tesla would be reducing its global workforce by over 10%.

Over the weekend, employees at Tesla received emails as part of a broader round of layoffs, as reported by Electrek.

Last month, Tesla disclosed that it would be laying off more than 6,700 employees across its locations in Texas, California, Nevada, and New York. The automaker has been facing challenges due to declining sales and increased competition in the electric vehicle market, as well as the impact of higher interest rates on consumer adoption.

Analysts speculate that Tesla's decision to cut staff in certain teams is aimed at reallocating resources towards its autonomous driving software, robotaxis, and the development of its humanoid robot, Optimus. By reducing spending in other areas, the company aims to preserve cash for these key projects.

In the second quarter, Tesla expects to incur costs of over $350 million due to the mass layoffs. The job cuts have also resulted in the departure of several top executives, including Drew Baglino, Rohan Patel, Rebecca Tinucci, and Daniel Ho.

In April, Tesla announced its plans to introduce new models that would utilise its existing platforms and production lines. This strategic move is expected to provide the company with better control over capital expenditures.

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• Tesla has laid off staff from its software, service, and engineering departments.

• The company disbanded its EV charging department and is reducing its global workforce by over 10%.

• Employees received emails over the weekend as part of broader layoffs.

Source: REUTERS