When Elon Musk an idea comes to him, he will recreate it. If he promises something, he delivers it. If you say you are going to reduce the number of workers in your companies, you will. And he did, again at Tesla.
The billionaire’s electric car company is in the midst of another round of layoffs, this time in its Autopilot division, Bloomberg reported on Tuesday who cites as sources people close to the file.
Tesla laid off about 200 workers and closed an entire office in San Mateo, California.. Most were employees they worked on timewhich first surprised Tesla’s offices, which had already seen a reduction in salaried staff.
The rest of the San Mateo office staff, about 350 people, were moved to another location.
The situation at Tesla
Early June, Elon Musk said he wanted to cut jobs and that he had a “very bad feeling” about the US and global economy.
Then, via video conference at the Qatar Economic Forum last week, claimed he wanted to cut up to 3.5% of Tesla’s total workforceMore precisely those who have wages. And he did.
The electric vehicle company had about 100,000 employees at the end of last year, but economic difficulties and falling shares have hurt job prospects.
Tesla shares fell 3.8% at 9:41 a.m. Wednesday in New York. The stock is down 34% this year through Tuesday’s close, versus a 20% decline in the SP 500 index. The image below is from a few minutes before this release.
According to a report by Business InternTwo former Tesla employees in Nevada filed a lawsuit last week, claiming the company broke the law by firing people without giving the notice required by the WARN Act.
WARN requires large employers who, under certain circumstances, notify people 60 days in advance of a major layoff event. Musk called the trial “trivial”.