Tesla fires hundreds of employees

Tesla fires hundreds of employees
© Getty Images

Luxury American electric automaker Tesla fired hundreds of employees this week after a company-wide annual review, according to multiple reports.

San Jose Mercury News said that workers estimated between 400 and 700 employees had been let go. A former employee similarly told Reuters that the company fired around 400 employees.

Tesla refused to say how many employees were fired, but said it expects the employee turnover to be similar to last year's attrition, according to Mercury News, which first reported the firings.


“As with any company, especially one of over 33,000 employees, performance reviews also occasionally result in employee departures,” a spokesman said, according to reports. “Tesla is continuing to grow and hire new employees around the world.”

The firings, which reportedly took place in sales and administrative departments, were performance-related. However a former Tesla employee, who was fired this week, told Reuters that he had never been given a bad review in the past. 

"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," a company spokesperson said Friday.

"This includes both constructive feedback and recognition of top performers with additional compensation and equity awards, as well as promotions in many cases," they added.

News of the firings came one day after the electric automaker announced a recall that would affect 11,000 of its Model X SUVs.