Tesla made layoffs in software and service divisions

American electric vehicle (EV) maker Tesla has decided to reduce its workforce. The company has laid off workers from software, service and engineering departments. This signals a major change in Tesla’s strategy. Earlier, Tesla had said that it plans to lay off more than 6,700 workers.

This company of billionaire Elon Musk is facing many challenges. This includes declining sales and tough competition from EV companies like China’s BYD. Tesla spokesperson had said that the company is balancing its operations to increase its efficiency.

At the end of last month, Musk laid off some executives from the company’s senior management. Earlier, Tesla’s workforce was reduced by about 10 percent. Musk had said that the company needs to be re-organized. Musk has decided to make cuts in Tesla’s senior management as well as lay off hundreds of workers. In the first quarter of this year, the company’s profit had declined to approximately $1.13 billion. It was worth $2.51 billion in the same period last year. In an email sent by Musk to senior executives of the company, Rebecca Tinucci, Senior Director of Tesla’s Supercharger Group, and Daniel Ho, Head of New Product, were informed about leaving Tesla.

Musk had said, “We believe that electric vehicles will dominate the market.” Recently, the company had reduced the prices of some of its models in America by up to $2,000. Tesla’s deliveries declined by about 8.5 percent in the first quarter. Recently Musk had postponed his visit to India. During this visit, he was also to have a meeting with Prime Minister Narendra Modi. Musk was scheduled to arrive in the country on April 21 to announce the launch of a business.