More layoffs at Tesla! EV major gives pink slips to staff in software, service teams

Tesla has been under pressure from dropping sales and an intensifying price war among automakers as elevated interest rates have slowed the adoption of electric vehicles

In another round of layoffs, billionaire Elon Musk's Tesla has given pink slips to its staff in the software, services and engineering departments, a report by Reuters, which cited a online tech portal Electrek, said.

Last month, the electric vehicle maker had announced a 10 percent reduction in its global workforce, following which the firm fired senior executives and nearly 500 team members of its Supercharger business.

According to the report, the automaker sent emails to its employees over the weekend as part of broader layoffs.

The company disclosed in notices last month that it will lay off more than 6,700 employees across its locations in Texas, California, Nevada and New York.

Tesla has been under pressure from dropping sales and an intensifying price war among automakers as elevated interest rates have slowed the adoption of electric vehicles.

The company is looking to focus on autonomous driving software, robotaxis and its humanoid robot Optimus, and Musk could be cutting its spending on certain teams to preserve cash for those projects, analysts have said.

Tesla disclosed last month it expects to book more than $350 million in costs in the second quarter for the mass layoffs. The job cuts also included an exodus of top executives, including Drew Baglino, Rohan Patel, Rebecca Tinucci and Daniel Ho.

The company said in April it was working on "new models" that would use its current platforms and production lines – a move that is expected to let it better control capital expenditures.

With inputs from Reuters