Tesla layoffs: EV maker likely to further downsize, 6700 jobs in software, services team likely to be cut

Electric vehicle maker Tesla has reduced the headcount due to the drop in sales amid the global uncertainties. As per tech publication Electrek, Tesla is now planning to lay off over 6,700 employees across its various locations, including Texas, California, Nevada, and New York. These layoffs will impact the software, service, and engineering departments.

Layoffs by Tesla

The decision to layoffs comes as the company faces numerous challenges, such as declining sales and an intensified price war among automakers, exacerbated by high-interest rates dampening the adoption rate of electric vehicles.

According to internal emails obtained by Electrek, Tesla communicated these changes to its employees over the weekend, suggesting a major organizational reshuffle is underway. “We are streamlining our operations to enhance our efficiency,” a Tesla spokesperson said, reflecting the company’s strategic adjustments.

Meanwhile, Tesla’s shares surged by over 1% on Monday. Tesla last month disclosed that it anticipates incurring over $350 million in costs related to these mass layoffs in the second quarter. The restructuring also led to the departure of several top executives, including Drew Baglino, Rohan Patel, Rebecca Tinucci, and Daniel Ho.

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