Just in case you missed it, the San Jose Mercury News reported yesterday that Tesla (NASDAQ:$TSLA) is firing hundreds of employees.
The news followed annual reviews at the Palo Alto-based company and was disclosed just one day after the auto manufacturer announced a recall impacting 11,000 of its Model X SUV’s globally. The reason for the recall? There were concerns that rear seats would fail to lock safely in place in the vehicles.
Further, the Mercury News announced that the dismissals were not classified as layoffs, but were performance-related. As one might have assumed, the majority of those fired were in administrative and sales role and not engineering or manufacturing.
Here’s what a Tesla spokesperson told CNBC:
“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. 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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