Tesla has a reputation as a demanding place to work, and the company lived up to its reputation this week when it laid off hundreds of workers. Them San Jose Mercury News estimated that between 400 and 700 employees were let go, based on employee reports.
“Like all companies, Tesla conducts an annual performance review,” a Tesla spokesperson told Ars. “This includes both constructive feedback and recognition of top performers with additional compensation. Like any company, especially one with over 33,000 employees, performance reviews also lead to occasional employee layoffs. Tesla continues to grow and hire new employees around the world. “
Tesla told Mercury news that there are many departures in management and sales positions, outside of production. The company declined to give the total number of workers let go.
Tesla also told the paper that the process has increased employee morale, as higher-performing employees receive additional compensation. But some workers who spoke to the paper said that the gun was damaged.
The firings come at a challenging time for the company. Tesla is trying to ramp up production on its 3-car model, and CEO Elon Musk is expected to produce 1,600 cars for the third quarter. The company produced 260 cars instead. Recent reports indicate that Tesla has been forced to produce some parts by hand, slowing down the general assembly process to buy.
Tesla CEO Elon Musk is a popular celebrity and boss. Musk himself is legendary for working long hours as he serves as CEO of Tesla and SpaceX simultaneously, and he demands long hours and high performance from employees.