Tesla is reportedly proceeding to lay off the employees at particular offices, which is due to the closure of an office.

Tesla Lays off Around 200 Employees

The inside sources have claimed that Tesla may soon be closing one of its offices in Silicon Valley. The closure will result in laying off 200 employees. These employees had been working for Tesla ever since the office was opened.

The sources revealed that Tesla is faced with several downtrends and the most alarming one is the constant rise in costs. Therefore, it was crucial for them to proceed with trimming their workforce to reduce the costs.

The information has been shared by people aware of the matter and may be working for Tesla.

Tesla Closes San Mateo Office

The details confirm that Tesla is reportedly going for the closure of the San Mateo office in Calif. The people working at the particular facility were working on the driver-assistance system for Tesla. They were also working on the improvement of the particular technology.

The people aware of the matter confirmed that the particular system is dubbed ‘Autopilot’. The particular office had a workforce of around 400 employees. However, half of these employees have been told that they are being let go.

Employee Details being Let Go

The inside sources have claimed that the employees Tesla is laying off include the salaried and hourly staff. The majority of these employees are the ones working on the refinement of the driver-assistance technology of Tesla. Their tasks included manual labeling and reviewing images for the technology.

The particular technology is beneficial for the drivers as they perform highway navigation. The same technology system is also responsible for providing more functions to the drivers.

Office Closure is confirmed

So far, it has been confirmed that Tesla will indeed close the particular employees. While it lays off half of the employees at the particular facility, it plans to send the remaining employees to other offices.

As the rumors of the office closure gained momentum, multiple news and reporting channels approached Tesla for comment. However, Tesla is yet to make an official announcement on this particular matter.

This marks a streak of constant lay-offs that have been announced by Tesla.  For the past few weeks, Tesla has been announcing that it plans to lay off its employees at multiple locations to deal with the rising costs.

For now, it seems that Tesla is indeed following its plan of laying off 10% of its total employees that Elon Musk had communicated they would.

The recent announcement has resulted in Tesla losing 1.79% of the stock value in the stock markets. Following the dip, Tesla shares are being traded at $685.47 per share.

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