Tesla Motors fired hundreds of workers after completing its annual performance reviews this week, even though the electric automaker is trying to ramp up production to meet the demand for its new Model 3 sedan, reported The Guardian.
The Palo Alto-based company confirmed the cuts in a statement on Saturday but did not disclose how many of its 33,000 workers were jettisoned. The San Jose Mercury News interviewed multiple former and current Tesla employees who estimated that between 400 and 700 workers lost their jobs.
The housecleaning swept out workers in administrative and sales jobs, in addition to manufacturing operations.
An unspecified number of workers received bonuses and promotions following their reviews, according to the company.
Tesla is under pressure to deliver its Model 3 to a waiting list of more than 450,000 customers. The company has been lagging behind its own production targets, after making just 260 of the vehicles in its last quarter.
Including other models, Tesla expects to make about 100,000 cars this year. Chief executive Elon Musk is aiming to increase production five-fold next year, a goal that probably will have to be met to support Tesla’s market value of $59bn – which is more than Ford.
Unlike Ford, Tesla has not posted an annual profit yet. Despite the mass firings, Tesla is still looking to hire hundreds more workers.-News Desk