Nearly 200 Autopilot employees are let go by Tesla, and the San Mateo office is closed.

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Nearly 200 employees have been let go by Tesla, and the San Mateo, California office where they worked has been closed. Tesla has completely dismantled the data annotation team working on Autopilot. Bloomberg was the first to announce the layoffs, and individuals who spoke to TechCrunch under the condition of anonymity have confirmed them.

 

The job losses are part of a larger one at Tesla. These layoffs, however, specifically targeted workers who had previously been considered essential to the business's Autopilot advanced driver assistance system and, more significantly, Elon Musk, the CEO, who was working to further develop automated driving features through the $12,000 optional FSD system.

 

Up to this point, Tesla employed hundreds of people in San Mateo and Buffalo, New York, to work on the Autopilot team. The San Mateo office had 276 employees; after firing 195 individuals across all levels, including managers, labelers, and data analysts, the team is down to 81 employees, who, according to sources, will be transferred to another location.



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According to one source, the majority of the workers were employed in low-paying, somewhat low-skill tasks like Autopilot data labelling, which entails verifying whether Tesla's computer correctly detected an object.

 

The insider mentioned that there had been rumours about this team's layoffs for months and that the work would be transferred to Buffalo.

 

According to Glassdoor data, Buffalo pays less than San Mateo for jobs like data analysts or annotation specialists at Tesla. It's unclear whether Tesla is moving staff to the New York headquarters to cut expenses or as a means of qualifying for the state's numerous job incentives, such as the tax credit for the New York Youth Jobs programme or the credit for hiring people with disabilities.

 

However, in Buffalo, where sources claim Tesla will most certainly overwhelm the current staff, "as is the Tesla way," it probably won't be a 1:1 replacement. Act now and handle the effects later.



What will happen to this technology if Tesla does not continue to hire more data labelers and other employees to work on Autopilot, which the firm claims is essential for training deep neural networks that can enhance the entire self-driving beta software? Maybe Tesla will rethink its vision-only approach to autonomy and begin incorporating lidar and radar into its cars instead.

 

Are there layoffs or firings?

The 195 Autopilot team members who were let go on Tuesday were certainly let off, according to sources, but the majority of the so-called layoffs that started at the end of May were actually terminations based on performance.

 

Any business has the option to avoid complying with regulatory obligations like the Worker Adjustment and Retraining Notification (WARN) Act, which helps ensure advance notice in cases of qualified factory closings and mass layoffs, by terminating employees based on performance.

 

Indeed, during its most recent wave of layoffs, Tesla allegedly failed to give the 60 days' notice required by federal law, according to a complaint filed last week by two former employees who worked there.

 

Additionally, a class action lawsuit is being brought against Tesla, which, according to insiders, continues to hire more rejected workers every day.

 

In after-hours trading on Tuesday, Tesla stock is down 5%.

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