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.
Tesla employees detail how they were fired, claim dismissals were not performance related
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.
Tesla employees detail how they were fired, claim dismissals were not performance related
