Tesla shutting down its San Mateo, California, office and cutting 200 jobs there, as part of the electric vehicle manufacturer's efforts to reduce its workforce to save money.
The staff at the San Mateo office had contributed to the improvement of Tesla's advanced driver-assistance system, or Autopilot. More than half of the staff at the office were notified that their jobs were being eliminated, according to people familiar with the matter. The remaining employees will be moved to another office, according to the Wall Street Journal.
Bloomberg reported earlier on Tesla's plan to close the facility. Most of the eliminated jobs were held by hourly workers despite CEO Elon Musk saying in an interview last week that he plans to add hourly workers but cut 10% of salaried staff.
The move came after Musk said he had a bad feeling about the economy. Musk told his executives to pause all their hiring worldwide. There are growing concerns about a possible recession, as a result of Musk's directive.
Musk recently said that Tesla's new factories in Texas and Germany were losing billions of dollars because of supply chain issues that affect the company's ability to increase production at each facility.
Both the Austin and Berlin factories are gigantic money furnaces right now, according to Musk. It should be like a giant roaring sound, which is the sound of money on fire. The supply chain breakdowns have been particularly debilitating for automakers who get parts from all corners of the globe. A lack of computer chips needed to run cars' computers compounded automakers' problems and sent prices for used and new cars skyrocketing.
The company's shares have lost 38% of their value in less than three months due to Tesla's recent increases in prices across its fleet of cars.
Nearly 100,000 people were employed by Tesla at the end of 2021, according to SEC fillings.