Tesla reportedly laying off staff in software, service teams just 1 month after mass firings

Electric-vehicle maker Tesla has laid off staff from the software, service and engineering departments, tech publication Electrek reported Monday, citing sources familiar with the matter.

The move comes after the Elon Musk-led automaker disbanded its EV charging department following Tesla’s announcement last month that it was reducing its global workforce by more than 10%.

Employees at the automaker received emails over the weekend as part of broader layoffs, according to the Electrek report.

The layofffs come after Tesla disbanded its EV charging department and announced a workforce reduction of 10%. AP

Tesla, whose shares closed up 2%, did not immediately respond to a Reuters request for comment.

The company disclosed in notices last month that it will lay off more than 6,700 employees across its locations in Texas, California, Nevada and New York.

The EV maker has been under pressure from dropping sales and an intensifying price war among automakers as elevated interest rates have slowed the adoption of electric vehicles.

The company is looking to focus on autonomous driving software, robotaxis and its humanoid robot Optimus, and Musk could be cutting its spending on certain teams to preserve cash for those projects, analysts have said.

Tesla disclosed last month that it expects to book more than $350 million in costs in the second quarter for the mass layoffs. The job cuts also included an exodus of top executives, including Drew Baglino, Rohan Patel, Rebecca Tinucci and Daniel Ho.

Elon Musk
Elon Musk’s Tesla has been under pressure from dropping sales and an intensifying price war among automakers. AFP via Getty Images

Tesla said in April it was working on “new models” that would use its current platforms and production lines — a move that is expected to let it better control capital expenditures.

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