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So this is the real reason that they had those 'performance-based' layoffs. If you need to fire a certain number of employees, just give bad performance evaluat
by antiviral 9y ago
So this is the real reason that they had those 'performance-based' layoffs. If you need to fire a certain number of employees, just give bad performance evaluations to those people and fire 'for cause.'
As a company, Tesla can use whatever nonsensical management techniques they want. But firing people 'for cause' will unreasonably hurt otherwise productive people in their future careers. And it will make future candidates far more wary to ever want to work there.
- crush-n-spread 9y agoI listened to the whole earnings call that just happened, Elon said they had laid of 2% of their work force which is much low than industry standard for yearly layoffs. Elon quoted GE which lays of the bottom 10% of their staff every year. It's not that bad.
- zzzzzzzza 9y agoGE had that policy for management (not the whole company), for a limited time.
- moduspol 9y agoOr maybe they could normally keep lower performing employees around, but cash is getting tighter so they decided to let some of them (less than 4%) go. "Cash being tight" and "firing some employees for performance reasons" are not mutually exclusive.
- vkou 9y agoAre they replacing them, or are they just making everyone else work more for the same pay? How much ramp-up will replacing them require? How will that impact their production rate?
- moduspol 9y agoLow performers (and especially the bottom 2%) can often provide negative value to the company. It's quite possible there is no net additional work to distribute, or if there was, that they had additional capacity in the rest of the workforce for the same tasks. They may not need to be replaced. If they do, we can safely presume they determined those resources (cost / time) involved in doing so were less than what it takes to replace them. It may not negatively impact their production rate. They may be able to improve their production rate by spending that money in a more targeted way now.
- dayaz36 9y agoDid you not listen to the earnings call? Annual performance evaluations are standard practices in the industry(and other industries). Tesla laid off a mere 2% of their workforce while GM laid off 10%!