Will this be followed by large-scale lay-offs of mechanical engineers? I would gather a large portion of the workforce (those working on ICE) are ill-suited to electric.
No, why should it? First, apparently they mean they will offer an "electrified version", additionally to the combustion engine models. Second, electrified can mean a hybrid, which still has a combustion engine.
And third: "Will electrify" will most likely mean "will also offer at least one electrified version of each model", and not to get rid of the gasoline variants immediatly.
Nah. Powertrains are a relatively small part of automotive engineering and the skills are still important in an electric car.
Electrification should make motors and batteries commodities so that engineering goes away, but you still need to package them, evaluate components, integrate them with the vehicle, etc.
I think we'll need fewer powertrain engineers but to the extent that more components become standardized, competition might be along the axis of variety of cars. You'll need engineers to design door handles and route brake light cables, and decide what fasteners to use for the air filter.
I wouldn't be surprised if car companies spent more on R&D after electric cars become more common - they won't be so protected by barriers to entry.
If Tesla manages to make 500k Model 3s next year, they'll be a uniquely young major auto maker. The youngest company that makes >500k cars/yr is either Honda or Hyundai. Honda made its first car in 1963, and Hyundai made its first car in 1968. Hyundai is an older company but Honda has been making cars for longer.
There are a few Chinese automakers who started in the 1980s but they're bit players - they primarily make cars that wouldn't pass first world emissions / safety tests.
