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"Trim the fat" is already happening every year during performance reviews. Companies like Tesla in fact brag about their cutthroat high-performance culture and
by paxys 3y ago
"Trim the fat" is already happening every year during performance reviews. Companies like Tesla in fact brag about their cutthroat high-performance culture and cutting the bottom X% if they aren't up to par (e.g. see all their job listings, or posts like https://www.tesla.com/blog/in-response-false-allegations https://www.tesla.com/blog/in-response-false-allegations).
If the company is doing mass layoffs on top of that then it pretty much always means financial trouble. And these layoffs tend to affect the talent that you want to keep.
- andsoitis 3y ago> If the company is doing mass layoffs on top of that then it pretty much always means financial trouble. When the big tech companies have been doing mass layoffs, the vibe amongst the workers and on here has always mostly been: but they're making so much profit! The reality is that an astute and strategic CEO/board will do layoffs as a last resort in order to steer a company through troubling times ahead. Tesla forecast a large drop in 2024 EV sales, which is now happening. They didn't do the layoffs until their forecast turned out true.
- jsnell 3y agoWhen did Tesla forecast that? Back in January they were just predicting lower growth in sales, not a drop.
- suzzer99 3y agoHaving worked for multiple large companies, a 10% fat trim is almost always going to be beneficial. Underperforming employees drag everyone else around them down far more than just their own lack of productivity. Now if Tesla is really alreadly slicing that close to the bone (like Microsoft when it used to cut 10% every year), then it could be detrimental. But if I had to bet w/o any inside knowledge, I'd guess the 10% cut is still not going to hurt that much, and could be a boost.