Tesla fires more employees in another round of job cuts
What's the story
Tesla, the electric vehicle giant led by Elon Musk, has announced another round of job cuts affecting staff in the software, services, and engineering departments, according to a report by Electrek.
This follows last month's announcement of a 10% reduction in Tesla's global workforce.
The company notified its employees about the layoffs through emails over the weekend.
Downsizing
Tesla's previous layoffs and future plans
Last month, Tesla revealed plans to lay off more than 6,700 employees across its facilities in Texas, California, Nevada, and New York.
This included the dismissal of senior executives and nearly 500 employees from its Supercharger division.
Amidst falling sales and an intensifying price war among automakers, Musk is reportedly focusing on autonomous driving software, robotaxis, and the humanoid robot Optimus.
Consequences
Financial impact and executive exodus at Tesla
The layoffs are expected to cost Tesla over $350 million in the second quarter.
This financial strain has been accompanied by an exodus of top executives, including Drew Baglino, Rohan Patel, Rebecca Tinucci, and Daniel Ho.
Despite these challenges, in April Tesla announced plans to develop new models that would leverage its current platforms and production lines, a move aimed at better managing capital expenditures.