Mashable: A few weeks ago Elon Musk warned Tesla's board of directors about his "very awful feeling" and that the electric vehicle company would need to reduce its workforce by around 10 percent.

About 200 people have apparently been let off from Tesla's Autopilot team and the company has shut down its California headquarters, according to reports. As reported by Bloomberg, the corporation told personnel on Tuesday of the change. Employees who worked as annotation specialists, reviewing and classifying Autopilot data acquired from clients, were among those who were impacted. Additionally, Tesla shut down its San Mateo headquarters and shifted its 350-person workforce to another neighboring site, according to new reports.

A few weeks ago Elon Musk warned Tesla's board of directors about his "very awful feeling" and that the electric vehicle company would need to reduce its workforce by around 10 percent.

Later, the billionaire clarified that the 10% decrease would only affect paid employees and that the number of hourly employees will continue to rise.

Professor of electrical and computer engineering at Carnegie Mellon University Raj Rajkumar said, "Tesla is clearly in a big cost-cutting phase." Due to the downtime in Shanghai, rising raw material prices, and supply chain issues, 2Q 2022 has been a difficult period for the firm.

Efforts in Shanghai to prevent the spread of the virus have slowed Tesla's manufacturing.

After their San Mateo lease ended, the laid-off employee told news agencies that they had been promised they would be moving to a Palo Alto office over the next several months. However, on Tuesday, the vast majority of employees were terminated. Workers in Buffalo, New York, had feared that Tesla would move some of the positions to lower-wage workers in order to save money.

Many staff in Tesla's San Mateo headquarters work on data annotation - evaluating and identifying different pictures acquired from Tesla vehicles to educate the Autopilot system of the cars on how to handle certain sorts of road situations.

It was reported on Tuesday that many Tesla data annotation staffers had been fired after posting their news on LinkedIn.

"This has been a somewhat dismal day for me thus far. Almost the whole San Mateo branch of Tesla has been laid off, including my own department "In an article on Linkedin, data annotator Caeser Rosas stated.