Tesla Lays Off Additional Staff, Includes Engineering, Software, and Service Departments

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Filed under Automotive, EV News, News, Tesla

Tesla has initiated another round of staff layoffs, affecting departments such as software, service, and engineering, according to reports from Electrek. This development follows Tesla’s recent announcement of dismantling its EV charging department and reducing its global workforce by over 10%. The company’s shares saw a slight uptick, but Tesla refrained from immediate comment in response to a Reuters’ inquiry. Recently, concerns from other automakers surfaced as a result of Elon Musk eliminating the entire Supercharger department, which may slow the anticipated charging infrastructure now that automakers are relying on the shift to Tesla’s North American Charging Standard (NACS), which will utilize Tesla Supercharging networks.

The decision to lay off employees comes amid challenges including declining sales and heightened competition in the electric vehicle market. Tesla anticipates incurring expenses exceeding $350 million in the second quarter due to these mass layoffs. Notably, the restructuring also witnessed the departure of several high-ranking executives, including Drew Baglino, Rohan Patel, Rebecca Tinucci, and Daniel Ho.

Despite these setbacks, Tesla remains committed to innovation, indicating plans for new models utilizing existing platforms and production lines. This strategic shift aims to enhance the company’s control over capital expenditures and optimize its operations in a competitive automotive landscape.


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