Electric vehicle maker Tesla (TSLA) is laying off 200 workers and closing its Autopilot facility in

California as part of a company-wide workforce reduction.

The majority of the 200 staff being let go by Tesla were data annotation specialists, and the

roles included both salaried and contract positions. The California Autopilot office had about 350

employees total, some of whom are being transferred to other areas of the company.

The cuts are part of Tesla’s efforts to reduce its salaried staff as the company adjusts to higher

interest rates that are cooling demand for its electric vehicles.

The company, which is based in Austin, Texas, had grown to about 100,000 employees globally

as it built new factories in Austin and Berlin, Germany last year.

Chief Executive Officer (CEO) Elon Musk said earlier this month that layoffs are needed in an

increasingly difficult economic environment. Specifically, he said 10% of salaried employees

would lose their jobs over the next three months.

Tesla’s Autopilot feature has come under investigation following several high-profile crashes

across the U.S. The company has been forced to make several changes to its Autopilot system

following those accidents.

Tesla’s stock is down 42% year to date at $697.99 U.S. per share. The company is in the

process of splitting its stock on a 3-for-1 basis later this year.