Electric car manufacturing company Tesla Motors fired hundreds of employees last week. The employees included workers from the Fremont, California factory and many corporate managers. The company is trying to solve problems with the new Tesla Model 3.
While the number of layoffs is not known, the estimated count ranges from 400 to 700, according to a San Jose Mercury News report. This figure represents between 1 and 2% of Tesla’s 33,000 employees. Both current and former employees Mercury News that there wasn’t any warning before the dismissals. Employees that were terminated includes both voluntary and involuntary departures.
“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,” a Tesla spokesman said in an emailed statement. “This includes both constructive feedback and recognition of 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.”
Earlier this month, Tesla produced 260 Model 3 cars in the third quarter, 220 of which have been delivered. This figure is far less than CEO Elon Musk’s prediction, which was more than 1,600 by September.
Tesla says the company will be refiling the positions. This is likely, at least for jobs in the California production facility, since the company will require more laborers to meet production targets.