Tesla Motors reportedly fired an estimated 400 to 700 people this week, including employees at its Fremont, California factory and corporate managers.
The hundreds of dismissals, which accounted to between 1 and 2 percent of Tesla’s more than 33,000 employees, came as an answer to its production problems regarding its recently released Model 3.
Former and current employees stated that there was little or no warning at all prior the dismissals. A Tesla spokesperson refused to confirm the numbers but said that the move followed its annual performance reviews, which, according to him, typically involved both involuntary and voluntary resignations.
“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,” an emailed statement from a Tesla spokesman explained. “This includes both constructive feedback and recognition of the top performers with additional compensation and equity awards, as well as promotions in many cases. 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.”
A waiting list of more than 450,000 customers puts increased pressure on Tesla’s Model 3 production. Including other models, the company expects to produce around 100,000 cars this year, but has been lagging behind its own production target with only 260 Model 3s produced in its last quarter.
Tesla Chief Executive Elon Musk stated that he aims to increase production five times next year, a goal that must be met to support the company’s market value of $59 billion.
GM and Unifor’s Tentative Agreement
One of Tesla’s biggest rivals, General Motors has settled on a tentative agreement with Canada’s largest trade union, Unifor, regarding a labor dispute that caused the whole operation of a GM Ontario plant, which makes Chevrolet Equinox, to be halted.
Around 2,800 members of the Unifor trade union will vote Monday on whether the settlement will be passed. If it is approved, the ongoing one-month strike the employees are conducting will be stopped and production of the Equinox can start as early as Monday night.
The strike, which was the first at a Canadian auto assembly plant in 21 years, was made to protest the sudden shift of some production to Mexico which resulted to the loss of about 600 Canadian production jobs.
Either side, GM and Unifor, refused to release details about the settlement before the vote.
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