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Tesla Employees Detail How They Were Fired, Claim Dismissals Were Not Performance Related (cnbc.com)

New submitter joshtops shares a CNBC report: Tesla is trying to disguise layoffs by calling the widespread terminations performance related, allege several current and former employees. On Friday, the San Jose Mercury News first reported that Tesla had dismissed an estimated 400 to 700 employees. That number represents between 1 and 2 percent of its entire workforce. But one former employee, citing internal information shared by a manager, said the total number fired is higher than 700 at this point. Most of the people let go from Tesla so far have been from its motors business, said people familiar with the matter. They were not from other initiatives like Tesla Powerwall, which is helping restore electricity to the residents of Puerto Rico now. The mass firings, which affected Tesla employees across the U.S., had begun by the weekend of Oct. 7 and continued even after the initial news report, sources said. Among those whose jobs were terminated in this phase, some were given severance packages quickly while others are still waiting on separation agreements. Some terminated employees told CNBC they were informed via email or a phone call "without warning," and told not to come into work the next day. The company also dismissed other employees without specifying a given performance issue, according to these people. "Seems like performance has nothing to do with it," one Tesla employee told CNBC under the condition of anonymity. "Those terminated were generally the highest paid in their position," this person said, suggesting that the firings were driven by cost-cutting. That assessment was echoed by several others, including three employees fired from Tesla during this latest wave.

14 of 250 comments (clear)

  1. Bummer by Greyfox · · Score: 3, Insightful

    Unlike traditional automakers, Tesla does not have a union. Yet.

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    1. Re:Bummer by Mr+D+from+63 · · Score: 5, Insightful

      I've yet to meet an underperformer who admitted that was why they were terminated. Not saying these people were, just something that I keep in mind.

    2. Re:Bummer by hey! · · Score: 5, Insightful

      Well, if 2% of Tesla's workforce was so bad it needed firing all at once, I'd say it's the management that was underperforming.

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    3. Re:Bummer by Rei · · Score: 5, Insightful

      I'd personally take a report from people who were fired about how they weren't deserving of being fired with a grain of salt.

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    4. Re:Bummer by Anonymous Coward · · Score: 2, Insightful

      But that's not the point of the comment you are replying to. It is a well-known cost cutting strategy to fire senior employees and hire junior ones for no other reason than that itself. Nominally this is idiotic because, especially in hourly jobs, a junior employee is usually much less productive (makes more mistakes, doesn't coordinate with other departments, etc) than a senior one. But if you're measuring productivity by hours worked instead of quality of work or other metrics, then that difference doesn't show up.

    5. Re:Bummer by WrongMonkey · · Score: 4, Insightful

      There is a big difference between 2484 open job listings on a website and 2484 actual new hires.

  2. Key line by TheCastro1689 · · Score: 4, Insightful

    "Those terminated were generally the highest paid in their position," this person said, suggesting that the firings were driven by cost-cutting.

    1. Re:Key line by Immerman · · Score: 4, Insightful

      Who says they did? They could easily have been hired at a lower salary and received raises in response to over-performing, until such time as they stopped delivering in line with their higher salary. Maybe they burned out, maybe they got complacent, maybe they started a family and stopped putting in 100-hour weeks, maybe they got promoted into a position outside their area of excellence. Lots of reasons someone might stop being as valuable as they used to be. And for better and worse pay cuts in excess of those automatically applied by inflation are generally considered to be ill-advised.

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  3. Re: PROTESTING AGAINST CENSORSHIP by Rakarra · · Score: 4, Insightful

    It's not trolling to mod off-topic posts to -1. Complain about it on a climate change story, it has no place here. Yeah yeah I know, "it's too important, we have to spread the word everywhere" says every zealot about every issue. Keep it on topic. If your screed has nothing to do with the story, then it should be modded down to -1, every time.

  4. Underperforming? by bobbied · · Score: 1, Insightful

    Yes, underperforming on a work to cost ratio... The higher you get paid, the more profit you have to make..

    Tesla has how much profit? Um... Can we say nearly nothing?

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  5. Re:All employees think they perform above-average by HornWumpus · · Score: 3, Insightful

    That's one newly fired employee's claim. Huge grain of salt required.

    Do they even know what other employees make? Not most places. Sure you know what they project (car etc), but that's usually high interest financed bullshit.

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    John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
  6. When you fire someone... by Dracolytch · · Score: 4, Insightful

    ... especially in an at-will state, it's always legally in your best interest to not state a reason for the termination. For an at-will state, you are often not required to provide a reason, and if you do provide one it can come back to bite you in a lawsuit if they can show evidence otherwise.

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  7. Re:Is anyone fired purely for performance? by Krishnoid · · Score: 2, Insightful

    A person is fired for performance reasons. 2% of the workforce, fired and not laid off, with zero notice -- there's another underlying reason.

  8. Re:PROTESTING AGAINST CENSORSHIP by wjcofkc · · Score: 4, Insightful

    "Slashdot is supposed to be a place free of censorship and it is time that the censorship of global warming skeptics stops."

    You must be new around here. We "censor" ourselves. Majority rules on Slashdot.

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