In the middle of ramping up production for the Model 3, Tesla confirmed several hundred job losses at the company. While details are sparse, current and former employees speaking to the San Jose Mercury News confirmed that 400 to 700 workers were fired after internal annual performance reviews.
There’s no need to panic, however, as most job losses occurred in sales, marketing, and administrative positions. Current employees indicated that the company’s manufacturing division, which employs approximately 10,000 people in Fremont, California, was untouched. This should reassure industry observers that are monitoring the company’s progress as it struggles to meet production targets for the Model 3.
In response to the story, Tesla indicated that they offered other employees bonuses and promotions after their performance reviews and plan to hire replacements for all positions.