According to a report from Electrek on Monday, electric vehicle manufacturer Tesla (NASDAQ:TSLA) has initiated another round of layoffs, affecting employees in the software, service, and engineering departments. Citing emails and sources familiar with the situation, Electrek disclosed the latest workforce reduction at the Elon Musk-led company.
This decision follows Tesla’s recent announcement of disbanding its electric vehicle charging department, part of its broader strategy to reduce its global workforce by over 10%.
As of the report, Tesla’s shares were up approximately 1%. Reuters reached out to Tesla for comment, but the company had not responded at the time of publication.
The EV manufacturer faces challenges due to declining sales and escalating competition among automakers, aggravated by higher interest rates dampening the demand for electric vehicles.
In its previous disclosure, Tesla anticipated incurring more than $350 million in expenses related to the mass layoffs during the second quarter. Notable departures included several top executives such as Drew Baglino, Rohan Patel, Rebecca Tinucci, and Daniel Ho.
In April, Tesla announced plans to develop “new models” utilizing its existing platforms and production lines, a strategic move aimed at enhancing control over capital expenditures.
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