Layoffs at Tesla: A Blow to Autopilot Development?
In a move that has sent shockwaves through the industry, Tesla has laid off nearly 200 employees from its data annotation team working on Autopilot. The layoffs, which have been confirmed by sources who spoke to TechCrunch on condition of anonymity, come as part of a broader reduction in jobs at the company.
The Layoffs: A Devastating Blow to Autopilot Development
Until today, Tesla had hundreds of data annotation employees working on the Autopilot team in San Mateo and Buffalo, New York. However, after laying off 195 staffers from all ranks – supervisors, labelers, and data analysts – the team is left with 81 workers, who sources say will be relocated to another office.
The layoffs have been met with concern among industry experts, who see them as a blow to Tesla’s efforts to develop its Autopilot advanced driver assistance system. Autopilot is a critical component of Tesla’s vision-only approach to autonomy, which relies on the use of cameras and machine learning algorithms to navigate roads without human intervention.
The Role of Data Annotation in Autopilot Development
Data annotation plays a crucial role in the development of Autopilot. It involves determining whether Tesla’s algorithm has accurately identified objects on the road, such as pedestrians, cars, or road signs. This process is essential for training deep neural networks that can help improve the full self-driving beta software.
Why Did Tesla Gut the Data Annotation Team?
Sources close to the matter have suggested that the layoffs were motivated by a desire to reduce costs and shift work to Buffalo, New York. However, it’s unclear whether this move is part of a broader strategy to become eligible for New York State’s job incentives, such as the New York Youth Jobs program tax credit or the credit for employment of persons with disabilities.
The Impact on Autopilot Development
If Tesla is indeed not going to be hiring more data labelers and others to work on Autopilot, then what will happen to that technology? Perhaps Tesla will change course on its vision-only approach to autonomy and start introducing lidar and radar to its vehicles.
Layoffs or Terminations: What’s the Real Story?
While sources confirm the 195 Autopilot team members who were let go Tuesday were indeed laid off, they also say most of the ‘layoffs’ that began in the end of May were, in reality, terminations based on performance.
Terminating employees based on performance allows any company the chance to avoid going through certain legal requirements like the Worker Adjustment and Retraining Notification (WARN) Act. The WARN Act helps ensure advance notice in cases of qualified plant closings and mass layoffs.
The Lawsuit Against Tesla
Indeed, last week, two former Tesla employees filed a lawsuit against the automaker alleging that the company did not provide the 60 days of advance notice required by federal law during its recent round of layoffs. There is also a class action lawsuit being carried out against Tesla that sources say recruits more spurned workers every day.
Tesla Stock Takes a Hit
Tesla stock is down 5% on Tuesday in after-hours trading, a testament to the impact of the layoffs and terminations on investor confidence.
What’s Next for Autopilot Development?
The layoffs and terminations have raised questions about Tesla’s commitment to developing its Autopilot technology. Will the company change course on its vision-only approach to autonomy and introduce lidar and radar to its vehicles? Only time will tell, but one thing is certain – the road ahead will be rocky.
