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Tesla Cuts 200 Jobs, Shutters Office In San Mateo, California

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Tesla cut 200 jobs and will close its office in San Mateo, California, a move that largely affects hourly employees working on the company's Autopilot program.

The remaining employees from the San Mateo office will be transferred to other locations, according to TechCrunch. The story was first reported by Bloomberg.

The office, at 3055 Clearview Way in San Mateo, is a three-story, 68K SF building. The lease is set to expire this year.

The moves also come at a time when Tesla workers are struggling to find adequate desks and parking spaces in the company’s Fremont, California, location, according to The Information, which noted that some employees were subsequently told to work from home, due to a lack of workstations — despite CEO Elon Musk's previous mandates that employees return to the office or work somewhere else.

Musk said in a leaked email earlier this year to employees that he would assume employees that did not return to the office had resigned. He has not commented on what their fate will be should they simply be unable to return to the office.

Musk earlier this year said that the company would lay off 10% of its salaried employees. 

The San Mateo office closure is another setback for office occupancy in the Bay Area. Chevron recently announced plans to exit its 92-acre headquarters in San Ramon, amid plans to relocate its employees to Texas. 

However, as tech companies begin to filter out of the Bay Area, or shift to increasingly hybrid models, other industries are beginning to pick up the slack on the hunt for deals.  

Related Topics: Tesla