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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.

43 of 250 comments (clear)

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

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

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

    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 fluffernutter · · Score: 2

      Yes and apparently we're witnessing how it happens.

      --
      Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
    3. 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.

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    4. Re:Bummer by HornWumpus · · Score: 2

      Look around the poker table, if you can't spot the chump, it's you.

      If you haven't worked with 'air thieves' you are one. It really is simple as that.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    5. Re:Bummer by ichimunki · · Score: 2

      Good analogy. At a poker table, it's all against all and in order for anyone to win, someone has to lose.

      --
      I do not have a signature
    6. Re:Bummer by ErichTheRed · · Score: 5, Interesting

      I highly doubt they'll ever have one. People have been totally brainwashed against unions. Companies tout over and over again how everyone needs to come together and be buddies. Prima donna rockstar IT guys and developers loudly proclaim that they would never stoop to the level of their peers. And people wonder why there's no job security.

      Things are going to have to get REALLY bad for unions to make a comeback. Bad enough for the average people to tune out the propaganda, like 50% unemployment bad. I personally have zero issues with seniority-based job security as long as the person is performing at an acceptable level. Too many people I know are getting thrown out of the IT field in their 40s and 50s, and it's nearly impossible to get rehired due to age discrimination. I think my next career move is going to have to be "cashing in my chips" and taking a lower-paying stable job.

    7. Re:Bummer by Rei · · Score: 5, Interesting

      Meanwhile, Tesla has 2484 open jobs on its website. A rather curious strategy if they're trying to "disguise a layoff". Let's lay off "up to 700 people" and then hire 2484 new people to.... cut back on the workforce?

      --
      I'll BUILD someone to replace you. Some kind of gamma-powered monster, with a heart as black as coal!
    8. Re:Bummer by MightyYar · · Score: 2

      I think this whole discussion should pivot on what one anonymous Tesla employee says.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    9. Re:Bummer by fahrbot-bot · · Score: 2

      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.

      Perhaps Management took their hands off the wheel, the autopilot nagged them about it, and they finally put down the coffee and morning paper and started paying attention again - before they entered an intersection with a crossing semi-truck.

      --
      It must have been something you assimilated. . . .
    10. Re:Bummer by hey! · · Score: 2

      Well if you read the summary, the people they laid off were allegedly the highest paid people in their job categories.

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    11. 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.

      --
      I'll BUILD someone to replace you. Some kind of gamma-powered monster, with a heart as black as coal!
    12. Re:Bummer by GLMDesigns · · Score: 2, Interesting

      Complete non sequitur.

      Ayn Rand argued in favor of those who produce. She argued that wealth is not a zero-sum game (such as the poker analogy); that wealth is created. And, if it is created, we ought to respect the creators of said wealth.

      The creators are more valuable to society than the redistributors - especially if the distributors end up shackling or killing the creators.

      --
      If you're scared of your govt then you need to further restrict its powers
      Vote 3rd Party in 2016 and beyond
    13. Re: Bummer by Rakarra · · Score: 2

      Seeing how unions so effectively ruined the competitiveness and efficiently of the Big 3, which were already very strong, established and highly profitable companies, a union would be a death sentence for a relatively young and developing company like Tesla.

      Big 3 management was entirely incompetent as well. I know we love to say unions killed the big 3, but perhaps if they had good direction and knew how to react to what other automakers were doing to get ahead, they might have been fine.

    14. Re:Bummer by s122604 · · Score: 2

      Instead of trying to work with put options, just go long on something you have confidence in

      Or better yet, just go with index funds, because if highly paid portfolio managers with research staffs routinely don't beat them, you probably can't either.

    15. 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.

    16. 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.

    17. Re:Bummer by retchdog · · Score: 2

      The quote in the article is from a "Tesla employee", without qualification as "former Tesla employee" as used elsewhere in the article. Also, I'd take a report from the people doing the firing that it was merit-based and not a cost-cutting measure with a grain of salt as well.

      Of course, it's all highly speculative at this point and in some sense I don't even see how it really matters, apart from as an indicator of Tesla's short-term economics.

      --
      "They were pure niggers." – Noam Chomsky
    18. Re:Bummer by wkwilley2 · · Score: 2

      2% of the workforce is not that large.

      Also, look at the bright side. If the company routinely lets go of under-performers, it makes everyone else work harder to keep from being the next person let go.

      --
      Have you ever fallen asleep at the keybhanusdiog?
  2. All employees think they perform above-average by geschbacher79 · · Score: 5, Interesting

    Illusory superiority is something we probably all have mentally: We all think we're above average employees, when obviously that's impossible.

    One thing I've noticed working at a few major companies is that nobody ever really gets bad performance reviews: Instead, they all range from satisfactory to excellent. But in reality, those who get satisfactory are getting bad reviews, it's just more polite to NOT say "you stink".

    1. Re:All employees think they perform above-average by Baron_Yam · · Score: 2

      I consider the equivalent of "unsatisfactory" to be termination of employment.

      "Satisfactory" can (unfortunately) mean anything from "it isn't yet worth the trouble of replacing you, so we're going to try and get you to improve before we fire you" to "you're a great employee but not particularly special".

      It'd be lovely to have a more exact scale, but people told they're heading to the chopping block sometimes choose to sabotage the company instead of either finding a way to satisfy the company's expectations or finding alternate employment.

    2. 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.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
  3. Performance reviews are an excuse to fire. by Anonymous Coward · · Score: 2

    Performance is PRETEXT used to fire undesirables before stock vestment. Especially if they're let go all at the same time!

    Your opinion is being played for a fool.

    This is systemic bullshit in our industry.

  4. 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.

      --
      --- Most topics have many sides worth arguing, allow me to take one opposite you.
    2. Re:Key line by DarthVain · · Score: 2

      So by that argument the message being sent is to try to avoid over-performing and getting raises as that will eventually get you fired once you are paid too much. Workers should strive for mediocrity and never perform more than they have to in order to avoid getting pay raises and eventual termination... Slow and steady wins the race I guess...

      As soon as I saw the headline the other day the first thing that came to mind is that they are cleaning house of all the union seekers, perhaps lumping them in with a bunch of others to hide the fact. However this will probably end up polarizing workers to unionize rather than to drive it out I would think as a result.

  5. 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.

  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.

    --
    This sig has been enciphered with a one-time pad. It could say almost anything.
  7. Is anyone fired purely for performance? by ErichTheRed · · Score: 3

    Maybe I'm lucky, but I've generally worked in places where they've never fired anyone for poor performance. Like the summary suggests, firings are usually based on salary and it's just a dumb HR thing. Are performance-based firings really a thing?

    Just to be clear, I don't work exclusively with rockstars either. There are plenty of mediocre performers. But I've never experienced having someone get so bad at their job that they had to be removed.

    There's no easy fix either...you basically have to not be the top guy on the salary spreadsheet when they decide to cut.

    1. 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.

    2. Re:Is anyone fired purely for performance? by whoever57 · · Score: 3, Informative

      I worked at a company that had a policy of firing the bottom 5% on a regular basis.

      This wasn't actually done in any consistent manner and often the bottom 5% were merely unliked by management, while their performance was actually OK. All kinds of things can lead to a single bad performance review, few of them related to the person's actual capability.

      The idea originates with Jack Welsh at GE (he proposed firing the bottom 10% in any year).

      --
      The real "Libtards" are the Libertarians!
  8. Re: PROTESTING AGAINST CENSORSHIP by fahrbot-bot · · Score: 2, Funny

    Technically, your post is off-topic too - just sayin'.

    --
    It must have been something you assimilated. . . .
  9. Re:PROTESTING AGAINST CENSORSHIP by sexconker · · Score: 4, Funny

    Let's test my theory:

    Wubba lubba dub duuuuuuuub!

    I need that Szechuan sauce, Morty!

  10. Yes, at GE by tomhath · · Score: 4, Interesting

    I used to work at GE, they did occasionally try to fire someone for poor performance. It was always a major hassle documenting the reasons, discussing the problem with the employee, etc. But it did happen once in a while when the person was truly a non-performer and sometimes resulted in a lawsuit against the company.

    Much more common was a RIF - Reduction In Force. Those involved a large number of people (like this one at Tesla) and usually effected older employees, poor performers, and people with the misfortune to be in a poor performing business group. Yea, it's illegal to layoff older employees in order to cut salaries so they always threw in a few younger employees to make it look like a mix.

    There were usually a few really poor performers around before a RIF. We called them "canaries", because like a canary in a coal mine, as long as they were around you knew you were safe.

  11. The truth by HBI · · Score: 2, Interesting

    The truth is that the Big Three automakers were (and are) unable to respond to competitive stresses caused by places with lower wages being able to export into the US market. The lame management was a given - though there were only three things the management could do:

    1) Cut costs sufficiently to compete - I rate this as nigh-impossible as a practical matter, as things like transport, raw materials, and infrastructure cost more here, too, and the automakers couldn't remake the whole economy all on their own. That said, this is where unions hurt the most.

    Unions are rather shortsighted beasts and they cause more harm to manufacturing workers in the long run than they help. If you take a year-long or five year view, they are great. Look over a career's length, and the evidence is equivocal. Over 100 years, the union will kill any manufacturing business dead. The objective of the union is to maximize return for the union members and to control/limit access to the labor market in that industry in the interest of maintaining scarcity toward maximizing union member return. This is rarely congruent with the interests of the manufacturer, most obviously in times of competitive stress. Unions are great at getting workers stuff when the going is good, but when it is rough, they are unwilling to give anything back. Unions most typically force the manufacturer to reach the edge of bankruptcy and total dissolution before the union is willing to negotiate in good faith and with urgency, and by then it is much too late.

    You need only look at what happened to US Steel, if the automakers aren't convincing enough.

    2) Diversify - which was done, but was insufficent to stop the bleeding. Think, say, investments in Mazda by Ford, or in Isuzu/Suzuki by GM (Geo line).

    3) Push their political masters to restrict trade to protect their market. This is what was ultimately done. You didn't think all those foreign car makers built plants in the US for their health, did you? They were compelled to. All that free trade talk is bullshit once your ox starts getting gored.

    So, those who blame the unions and blame the management have lots of details to pick from to support their view. My view is that we should just accept that free trade is a phantom and stop pretending that we don't have a corporatist, protectionist regime. It's the only way the old-fashioned US economy works on a macroscopic level. Even the internet companies are starting to feel the pinch and are going to become part of this old school economy before long.

    Why is so much of politics today pretending we don't believe in what we actually do believe in?

    --
    HBI's Law: Frequency of calling others Nazis is directly correlated with the likelihood of the accuser being Communist.
    1. Re:The truth by Uberbah · · Score: 5, Informative

      The truth is that the Big Three automakers were (and are) unable to respond to competitive stresses caused by places with lower wages being able to export into the US market.

      Not so much a truth when at the time Germany made twice as many cars while paying their workers twice as much money.

      So, no. What happened to the Big Three was their bottom lines resting on high-margin, gas guzzling vehicles, and that line fell apart after Katrina pushed gas prices over $4 a gallon. Same thing that happened to them in the 80's when the oil embargo hit and Japanese manufacturers ate their lunch.

      Unions are rather shortsighted beasts and they cause more harm to manufacturing workers in the long run than they help. If you take a year-long or five year view, they are great. Look over a career's length, and the evidence is equivocal. Over 100 years, the union will kill any manufacturing business dead

      Bullshit. The long term well-being of the union and its workers is inseparable from the the long term well-being of the company. As opposed to corporate executives, who are happy to give themselves raises and golden parachutes while driving the company into the ground. Just ask Marisa Mayer and Carly Fiorina, just to name two.

      Unions are great at getting workers stuff when the going is good, but when it is rough, they are unwilling to give anything back.

      Bullshit. Unions don't give themselves massive pay increases while the company is failing, you're thinking of corporate management. Management who talk the union into accepting pay and benefit cuts while secretly securing golden parachutes for themselves in the event of bankruptcy.

  12. Re: PROTESTING AGAINST CENSORSHIP by fredrated · · Score: 2

    All of us.

  13. Does the reason matter? by Gabest · · Score: 2

    If it does, it is only for the shareholders.

  14. Re:PROTESTING AGAINST CENSORSHIP by ctrl-alt-canc · · Score: 4, Funny

    > Global warming is real.

    Unless declared integer.

  15. Tomorrow's headline by Brockmire · · Score: 2

    Apple hires 700 new engineers.

  16. 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.

    --
    Brought to you by Carl's Junior.
  17. Re: PROTESTING AGAINST CENSORSHIP by fahrbot-bot · · Score: 2

    And I'd be fine getting modded down for it, I certainly wouldn't bitch and moan in other /. stories because some mod gave a -1 to my off-topicness.

    Sure, I get it - I was just injecting some humor. Things get mis-modded all the time here and it can be annoying -- mostly so when "flamebait" or "troll" is applied simply because the moderator disagrees with the opinions (or facts) in the post -- and this happens a lot with certain topics. Such mis-moderation injects the moderator's viewpoint into the thread - which makes it commentary, not moderation. Also annoying is when a post is modded "off-topic" when it's topic-adjacent or otherwise weirdly connected (often in an attempt at some humor) which shows a lack of imagination on the part of the moderator.

    In this case, the original post was way off-topic and I would have modded it as such, instead of troll.

    --
    It must have been something you assimilated. . . .
  18. Rack and stack? by mpercy · · Score: 2

    Maybe they started using the old GE strategy of firing th bottom x% of the workforce as a matter of preventative maintenance?

    "Stack ranking, also referred to as forced ranking, where managers across a company are required to rank all of their employees on a bell curve, has been a controversial management technique since then GE CEO Jack Welch popularized it in the 1980s.

    "Only a small percentage of employees, typically about 10%, can be designated as top performers. Meanwhile, a set number must be labeled as low performers and are often fired or pushed out, giving the system the popular nickname "rank and yank."