About 200 Tesla employees were laid off on Tuesday (28). The information was reported by Bloomberg.
Rumors of layoffs at the company were already circulating. Last week, Elon Musk, the company’s CEO, confirmed that it would be necessary to cut 10% of Tesla’s paid workforce.
Employees affected by the move worked at Tesla’s San Mateo, Calif., factory, which was closed. The office, which had 350 employees until then, performed data tagging and evaluation of customer vehicles for automated tests and other forms of driver assistance.
The rest of the team would be transferred to company facilities around the region.
Musk says the total workforce reduction will be 3.5%, with most of those laid off being salaried professionals, with the goal of increasing the percentage of hourly workers.
People close to the situation say that most of those laid off, however, were on contract hours, especially the kind that Musk said would not be affected by the cuts, as reported by Bloomberg.
Data tagging is an important part of Tesla’s business because it is this mechanism that helps make calls “Deep Neural Network” (Aprendizagem Profunda, in Portuguese) that trains an algorithm that helps drive self-driving cars, basic business from the car manufacturer.
In practice, with the help of technology, industry workers analyze images of vehicles, license plates, signs, traffic lanes and tag data. There is such a factory in Buffalo, New York.
The justification for the cuts stems from the Tesla CEO’s concern about an uncertain economic environment, compounded by faster-than-planned growth.
Layoffs are concentrated in areas that have grown the fastest, including, for example, HR and software engineering staff, according to Bloomberg.
As Tesla expands — with the company’s headquarters moving to Austin, Texas, and more than 100,000 employees worldwide — the cuts have come under criticism and even lawsuits. During the year, Tesla participates (#TSLA34it has already dropped by 39.45 percent.
In addition, Musk has recently been involved in controversy related to the management of his employees by sending emails to force face-to-face work or be fired.
For Musk, Tesla “will make the most interesting and meaningful products of any company in the world. And it won’t happen by phone.”