Tesla Fires 229 Employees From Autopilot Team, Shuts San Mateo Office

According to a California regulatory filing, Tesla will be laying off 229 employees in data annotation who are part of the larger Autopilot team. 

They also plan to close the San Mateo office, California, where they used to work.

According to anonymous sources, It has been reported that almost 200 employees were fired. Bloomberg first reported the layoffs. 

They have been confirmed by a Worker Adjustment & Retraining Notification Act notice. 

Employers who conduct mass layoffs must issue a notice to affected workers within 60 days of the WARN ACT.

276 people worked in the San Mateo office. Sources close to the matter say that 47 of those remaining employees could be sent to work at Tesla's Buffalo Autopilot. 

According to one source, most workers were employed in low-skilled and low-wage jobs such as Autopilot Data Labeling. This involves determining whether Tesla's algorithm correctly identified an object.

According to the source, layoffs were being discussed for months by this team, and that work would be transferred to Buffalo.

These layoffs are part of the 10% reduction in the workforce announced by Tesla CEO Elon Musk last month.

At least one lawsuit has been filed because WARN notifications were not issued. Two former Tesla employees were fired in June by lawyers representing them. 

The lawsuit was filed in June in the U.S District Court for Texas Western District. It alleges that the company failed to provide the required advance notice of 60 days during a recent round of layoffs.

The plaintiffs' lawyers filed an urgent motion last week asking for a judge to stop the electric vehicle manufacturer from requiring workers to sign releases in return for less severance than federal law allows.