New Delhi, May 7: Tesla, the electric vehicle company overseen by Elon Musk, has once again announced another round of layoffs, impacting employees across various departments. Elon Musk's Tesla has laid off its employees from its engineering, software and services divisions. Elon Musk is continuing its staff reductions within the EV car manufacturing company and the latest round of Tesla layoffs comes as the company navigates a challenging market environment and seeks to streamline its operations.

As per a report of MSN, Tesla announced its fourth week of layoffs as it works on cost-cutting and operational improvements by reducing its workforce further. Employees in software development, services and engineering departments have been laid off this time around and these are typically areas where businesses try to make themselves more efficient. Tech Layoffs: Over 80,000 Tech Employees Lost Jobs Globally in First Four Months of 2024, Job Cuts Continue To Haunt Overall Startup Ecosystem, Says Report.

Employees at the automotive company were notified through email during the weekend about layoffs. Tesla is currently facing challenges as a result of declining sales and increased competition in the automotive industry. A highly competitive pricing environment that has been made even more challenging by increased interest rates impacting the electric vehicle market. 

This decision also follows Tesla's recent announcement of price reductions on three out of its five models in the United States, which also relates to declining sales and the recall of approximately 4,000 Cybertrucks due to safety concerns related to the accelerator. Layoffs 2024: Reader’s Digest Shutting Down Its Operations in UK After 86 Years, Permanently Laying Off 500 Employees, Says Report.

Despite the fresh round of layoffs, Tesla's shares saw a slight rise of about one percent. Tesla continues to streamline its workforce and operations. The layoffs have impacted both lower-level employees and high-ranking executives, which reflects the extent of the company's restructuring efforts. However, the company has not publicly commented on the details of the layoffs or their impact on the business.

(The above story first appeared on LatestLY on May 07, 2024 09:12 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).