Hundreds of Workers Fired at Tesla

Summary: Ahead of X-Mas festivity, Tesla has fired between 400 to 700 employees following a series of performance evaluations after the company significantly boosted its workforce with the purchase of solar panel maker SolarCity.

Speaking to Mercury news, a Tesla Spokesperson said: "Like all companies, Tesla conducts an annual performance review during which a manager and employee discuss the results that were achieved, as well as how those results were achieved, during the performance period".

"As with any company, especially one of over 33,000 employees, performance reviews also occasionally result in employee departures", a spokesman told The Mercury News.

Tesla built about 25,000 vehicles in the three months that ended September 30 but only 260 of those were Model 3s - considerably fewer than the 1,500 it had projected.

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Meanwhile, a Tesla representative said the dismissals would not have an effect on Model 3 production and that a "vast majority" of the vacant positions would be filled with new hires. It was later revealed by the WSJ that Tesla's "dirty secret" for the unexpected production problem is that it was banging out parts of the Model 3 by hand.

Workers in sales manufacturing and administrative roles were fired after the annual reviews were gone through. Employees said the firings have lowered morale through many departments. He worked at Tesla for almost four years, and said he heard about 60 other workers in his section of the factory were dismissed. Elon Musk prefers to work long hours as he serves as CEO of Tesla and SpaceX simultaneously. "We don't know how high up it went", said a former employee, who worked on an assembly unit and didn't want to be recognized. About 450,000 customers have placed $1,000 deposits for the Model 3.

The firings came in the middle of the company's production ramp-up of the Model 3.

While Tesla did not provide statistics, it suggested that its attrition rate this year is roughly similar to last year's rate. "A major change in staff - whether dismissal or layoff - is an indication that there is an upper level movement to put the train back on the tracks".

(Copyright © 2015. All Rights Reserved.)
 
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