Tesla closes its Silicon Valley office, lays off 200 workers

Tesla told the employees Tuesday, it will close its San Mateo, California office, and cut 200 jobs there as part of the electric vehicle manufacturer’s effort to reduce its workforce to save money.

Employees in the San Mateo office contributed to the improvement of Tesla Advanced driver assistance system, or autopilot. According to people familiar with the matter, more than half of the employees in that office have been notified that their jobs have been cancelled. The remaining employees will be moved to another office, according to the Wall Street Journal.

Bloomberg previously reported on Tesla’s plan to shut down the facility. Although most of the abolished jobs were filled by hourly workers CEO Elon Musk He said in an interview last week that he plans to add hourly workers but is cutting 10% of salaried employees.

The move comes after Musk warned he had a “very bad feeling” about the economy. Reuters reported that Musk asked his executives to “pause all hiring worldwide.” Musk’s guidance comes amid growing concerns about a possible recession.

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A Tesla car passes the Tesla factory. (Reuters/Stephen Lamm/Reuters Photo)

Musk recently said that new Tesla plants in Texas and Germany are losing “billions of dollars” in part due to supply chain issues affecting the company’s ability to ramp up production at each facility.

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“The Berlin and Austin factories are giant kilns right now,” Musk said at the time. “It should be like the sound of a giant roar and it’s the sound of burning money.”

Elon Musk attends the Metropolitan Museum of Fashion Art Institute Benefit Ceremony to celebrate the opening of the exhibition In America: An Anthology of Fashion May 2 in New York. (Evan Agostini/Invision/AP/AP Newsroom)

Supply chain malfunctions since the beginning COVID-19 2 years ago Particularly exhausted were the automakers, who source parts from all over the world. The lack of computer chips needed to power car computers has exacerbated the problems of automakers, as well as driving up prices for used and new cars.

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Tesla recently raised prices broadly across its fleet of cars and company shares They lost 38% of their value in less than three months.

According to SEC filings, Tesla and its subsidiaries employed nearly 100,000 people at the end of 2021.