Tesla is closing one of its Silicon Valley offices and laying off about 200 people there as part of the electric vehicle maker’s plans to trim its head count amid rising costs, according to people familiar with the matter.

The company told employees Tuesday that it was closing a San Mateo, Calif., office, which had been home to staff who worked to help improve Tesla’s advanced driver-assistance system known as Autopilot, the people said. About 200 people, or more than half of the staff in that office, were told they were being let go.

This post first appeared on wsj.com

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