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Tesla fires hundreds of employees following performance reviews

By Daniel Uria
Tesla fires hundreds of employees following performance reviews
California-based automaker Tesla fired hundreds of employees after conducting performance reviews this week. Photo by EPA

Oct. 14 (UPI) -- U.S. automaker Tesla fired hundreds of employees this week after conducting performance reviews.

Workers at the company, which employs about 10,000 workers at its Fremont, Calif., factory, estimated between 400 and 700 employees were fired, San Jose Mercury News reported.

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A Tesla spokesman said the dismissals came primarily from areas outside of manufacturing, such as administrative and sales positions, and the company plans to hire for the "vast majority" of the new vacancies.

The spokesman said the firings were not layoffs, but came as the result of a company-wide annual review.

"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. This includes both constructive feedback and recognition of top performers with additional compensation and equity awards, as well as promotions in many cases," the spokesman said in as statement to CNBC. "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."

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Last week Tesla CEO Elon Musk announced the company delayed the reveal of its first all-electric semi tractor-trailer to ease "production hell" on its model 3 vehicles.

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