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Tesla shrinks: Closes office in California, lays off 200 people

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Tesla, the US-based electric car company, announced that it is closing its office in San Mateo, California, and laying off 200 employees.

CNBC reported that in the shutdown at the San Mateo plant, which took place as part of the cost-cutting plan, employees were tasked with tagging images taken from the company’s cars to develop driver assistance systems marketed as Autopilot.

Two employees affected by the layoffs told CNBC that they knew that Tesla’s lease had expired.

Tesla, which has not yet fulfilled its promise of robotaxis technology, has previously moved a number of Autopilot information workers to its location in Palo Alto, California.

Typical data disclosure work at Tesla involves identifying and annotating objects in short clips captured by cameras and sensors in Tesla vehicles.

In order to improve Tesla vehicles in the business of tagging videos, the recorded scenes are examined and errors are tried to be minimized.
An employee told CNBC that many of the San Mateo employees expect to move to Palo Alto or another office, but they won’t lose their jobs.

Tesla CEO Elon Musk previously stated that the company will shrink by 10 percent, and stated that if employees working from home do not return to their jobs, they will be fired.

In an interview published last week, Musk said Tesla’s new factories in Texas and Berlin had lost “billions of dollars” due to supply chain disruptions that prevented the company from increasing production at both plants.

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