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Tesla Cuts 200 Autopilot Jobs, Closes San Mateo Office

tesla jun29 lt

Tesla Inc. laid off about 200 employees in its Autopilot unit as the luxury electric car maker closed down its office in San Mateo, California as part of cost cutting efforts, reports said.

The San Mateo office, where employees worked on improving the driver assistance systems, marketed as Autopilot, had about 350 employees before the cut. The company had already transferred a number of its Autopilot data employees in the office to its location in Palo Alto, California. The move comes as the company's lease was ending in San Mateo.

As per reports, majority of the affected jobs were of data annotation specialists, and hourly workers. They were tasked with evaluating customer vehicle data related to the Autopilot driver-assistance features and performing data labeling.

At a meeting, the affected employees were told that June 28 would be their last working day, but they would be paid in full for the next 60 days. Severance packages are expected to include compensation based on years of service and an additional two months of benefits.

Chief Executive Officer Elon Musk, in a recent interview with Bloomberg, had outlined plans to cut 10 percent of salaried staff over the next three months. Meanwhile, he had said that hourly jobs would be increased.

In early June, Bloomberg had reported that Musk wanted to pause all hiring worldwide, as Tesla has become overstaffed in some areas.

Musk then noted that the planned cuts would amount to about a 3.5 percent reduction in total headcount at the company. Despite the planned salary cut, Musk expects the overall headcount to be higher in a year. Tesla, now based in Austin, Texas, employs about 100,000 workers worldwide.

Musk also said last week that Tesla's new factories in Texas and Berlin were losing "billions of dollars" as supply chain disruptions affect the electric vehicle giant's ability to ramp up production.

Tesla had previously stated that its own factories hade been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through the rest of 2022.

The company recently has asked its employees to stop working from home and to return to office or else quit. Like many other major companies, Tesla had allowed its employees to work remotely after the COVID-19 pandemic hit in 2020.

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