Tesla lays off more staff in software, service teams: Report

More lay offs: American Electric Vehicle (EV) giant Tesla has initiated another wave of layoffs, according to reports from Electrek on Monday. The layoffs have taken place across departments, including software, service, and engineering, as confirmed by emails and insider sources.

This latest round of cutbacks follows Tesla's recent decision to disband its EV charging department, part of a broader workforce reduction exceeding 10 per cent globally. Despite the fresh round of layoffs, Tesla's shares saw a modest 1 per cent increase. However, the company has yet to respond to Reuters' request for comment on the matter.

Tesla is in the middle of mounting pressure as sales have witnessed a decline and there is pressure building from competition in the EV market, characterised by a fierce price war among automakers. The company's challenges are exacerbated by higher interest rates, dampening the pace of electric vehicle adoption.

Last month, Tesla projected second-quarter costs of over $350 million associated with the extensive layoffs. Among those affected were several high-ranking executives, such as Drew Baglino, Rohan Patel, Rebecca Tinucci, and Daniel Ho.

In April, Tesla announced plans to develop "new models" utilising existing platforms and production lines, a strategic move aimed at optimising capital expenditures and bolstering operational efficiency.

(With Reuters inputs)