Tesla has reportedly laid off approximately 200 workers from its Autopilot team and closed an office in California. According to Bloomberg, the company notified staff of the move on Tuesday. Many of the affected employees were annotation specialists whose jobs involved evaluating and labeling Autopilot data obtained from customers. Along with the layoffs, Tesla closed its San Mateo location; Bloomberg reports what remained of the 350-person team was transferred to another nearby office.
Tesla did not immediately respond to Engadget’s request for comment. The automaker has not operated a public relations department since 2020.
The cuts are almost certainly part of a broader effort by Tesla CEO Elon Musk to reduce costs at the company ahead of a potential recession. At the start of June, Musk told employees in a company-wide email he had a “super bad feeling” about the economy and that layoffs were coming. He later told Bloomberg he planned to reduce Tesla’s salaried workforce by about 10 percent over the next three months. The admission came after Musk told remote workers to return to the office or lose their jobs. Tesla reportedly bungled its back-to-office plan, with The Information reporting that many employees returned to the company’s Fremont facility to find there weren’t enough parking spots and desks.