After employee performance reviews Tesla fires hundreds
Tesla is an innovative company known for its leadership in electric powered vehicles. Tesla launched its new car in July 2017 called the Tesla Model 3. The Model 3 has had numerous set backs in production. The company expected to have over 1,500 cars built by October 2017 but only 260 have been produced. Tesla says the reason for the slow production is because certain parts have had to be hand made and also because a small portion of their suppliers have delivered the parts late.
Tesla has over 33,000 employees all over the world. After conducting their yearly employee performance reviews as of October 14, 2017 Tesla reportedly let go between 400 and 700 workers due to below average work performance. Tesla has said that the layoffs were in administrative and sales positions outside of manufacturing. Tesla has a reputation as a demanding place to work. The CEO Elon Musk has been known to work long hours himself and is a famously mercurial boss. Employees that were high achievers were praised and given higher pay compensations, but employees at Tesla report moral to be at an all time low.
The Model 3 is Tesla’s new project and their first planned mass production car. With obvious problems with production people are skeptical weather these employees were laid off rather then fired because of performance reviews.
The firings come at a challenging time for the company as they have been trying to ramp up production on the mass-market Model 3. Firings of so many people at once are rare but it seems that Tesla is willing to do dramatic things to continue towards their goal of a mass produced Model 3.