Tesla Motors: Hundreds Of Employees Lose Jobs After Annual Reviews
Despite its efforts to ramp up production to meet the huge demand for the Model 3 sedan, Tesla Motors fired hundreds of employees following the annual performance reviews.
Having car geeks across the world with their fingers crossed for the upcoming Tesla Model 3 sedan, the California-based electric car maker seems to have hit the news headlines again with a not-so-pleasing face this time around.
The annual performance reviews of the firm’s employees were out recently, following which Tesla has reportedly fired hundreds of workers from various departments. The company officially confirmed the dismissals, but hasn’t yet given the exact number of employees who were laid off. Media reports state numbers somewhere between 400 and 700.
Being the automaker’s first mass-market car, the Model 3 sedan has had an overwhelming welcome from the public ever since its unveil. With the car having amassed over 450,000 bookings so far, the Model 3 seems to be a critical turning point in Tesla’s long-term growth plans for sure. This immensely stretched out list of prospective buyers has obviously rendered the company under great pressure as not enough Model 3 units have been made in the past three months. Only 260 units have been made so far.
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Though this massive cleanup process might seem suicidal in such a backdrop, the company is hoping to hire newbies to fill these vacancies at the earliest. Tesla’s official announcement on the firings call it a part of the annual performance reviews which should not be treated as layoff. A Tesla spokesperson said,
"As with any company, especially one of over 33,000 employees, performance reviews also occasionally result in employee departures. Tesla is continuing to grow and hire new employees around the world."
In Tesla’s defence, high-performing employees have been rewarded with hikes and bonuses following the same performance reviews.
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Though the company is navigating through a nasty storm at the moment, Elon Musk has got plans to increase total production output to a staggering 500,000 cars in 2018, deliver 100,000 cars in 2017 and raise Model 3 production to 10,000 cars per week.
Source: The Mercury News