Tesla fired 7% of its employees on Friday, seven months after cutting 9% of its workforce.
Tesla had increased its workforce by 30% in 2018 when production of its Model 3 sedan was ramped up, CEO Elon Musk said in an e-mail to employees on Friday. He suggested that this round of dismissals be necessary for Tesla to become consistently profitable in the introduction of cheaper vehicles such as the $ 35,000 version of the Model 3.
But Musk had the layoffs for 2018 as a decision that Tesla would not have to repeat.
"We are making this difficult decision now, so we will never have to do it again," he told the staff at the time.
Read More: Anyone Telling You that Tesla Affects the Rest of the Auto Industry Is Totally Wrong
Five former Tesla employees released Friday spoke with Business Insider about theirs Time the time society and how they were told that they were fired.
Every former employee demanded anonymity for fear of retribution from Tesla.
"Like Sheep at Slaughter"
A former clerk who worked in Tesla's delivery department in California woke up Friday at Musk's email. He said he had tried not to think about it, but found it difficult when he arrived at his office where his colleagues were discussing the e-mail. He noticed that one of his managers was quiet and "awkward" as he arranged chairs in the corner of the office farthest from the staff.
The manager told the delivery employee and about 1
"I sat in silence like a sheep for slaughter," he said.
A colleague asked if he could personally speak to the manager after the speech, but the manager turned down his request.
The manager told the employees that their positions had been dismissed, but not all of the delivery team's team had been fired, and the manager had not specified why each employee was dismissed. Employees were not given details of their severance package, just a blank sheet of paper where they write down their name and personal e-mail address. The employee of the delivery said goodbye, packed his personal belongings and left.
"I just want to know why we were the people who were selected," he said.
The employee of the delivery said dismissal had not been devastating as he wanted to leave the company later in the year, but the abruptness of the announcement bothered him.
"It's a very shitty way to treat your employees who have pulled off their butts," he said. "Now I have no idea what to do."
Overall, the delivery employee said that he had enjoyed his time at Tesla, especially the camaraderie with his colleagues, but he did not feel the same bond with his managers and sometimes felt the pressure to work long hours without notice.
"I was in shock"
An engineer working at Tesla's Gigafactory in Nevada said she was surprised by the layoffs and cited Musk's claim that the layoffs of 2018 would be the last of Tesla's.
About an hour after she came to work on Friday, management-level employees began to drag some of her colleagues into meeting rooms. An hour later, she was called to a room, told her that she was released, and asked her to confirm her contact information. She was then escorted to her desk where her laptop was taken. She was told to leave immediately.
The trial took about five minutes, she said, and she was given no reason to stop.
"I was shocked," she said.
She was told that she would be paid for two months as a severance pay, but had not seen the exact details of her severance pay on Tuesday afternoon.
The engineer said she liked her job at Tesla, in particular the ability to work and study with different departments, but she wished she had more information about why she was dismissed.
"It was actually much easier than I thought it would be"
A third former employee who worked in Tesla's energy division in California said she loved working at Tesla and saw her sad At the end of the business, she found it easier to be fired than to watch her colleagues being fired and coping with the consequences.
"Once you've seen everyone go through this before, it's much harder to be one of those people who stays," she said.
After waking up on Friday morning, she read Musk's email and saw that her manager had sent her an invitation to the Google Calendar. Her meeting with her supervisor was brief and she did not ask why she had been fired because a conversation with another supervisor prior to the meeting had indicated that her supervisor could not decide which members of his team would be dismissed. She found the experience relatively painless as her team worked remotely and was out of the office this morning.
"Actually, it was a lot easier than I thought," she said.
She described Tesla as a demanding but rewarding work environment, saying she was proud of Tesla's mission and close ties to her peers.
It does not bother her to have a few months' paid time off, she said, and the flood of news she received about career opportunities has eliminated any fear of her next move.
"People seem to be very anxious to help me find a new job," she said.
It Was Another "Big Cleaning Up"
A delivery experience expert who was fired, Business Insider said, said that this round of discharge was just one of Tesla's big "purges". They happened at the company about every six months, she said. The employees would also outsmart every month. Then about every three months there was a jerk of new employees.
The logic of who was released, the woman said, was "accidental" and the turnaround was the fastest she had ever seen in a corporation.
"The managers who were in my business a year ago are not the same today, my business acts as a sales, service, and delivery hub, and every role of management has changed from January 2018 to January 2019. That's just Management, "she told Business Insider.
So, finally, another purge was expected.
She described her seven months with Tesla as exhausting and chaotic. Their job was to prepare the paperwork for the customers who buy their cars. She would then go to a document that could take five minutes or an hour, depending on the client or how well the paperwork was done.
Then the customer would receive a brief orientation of his car. It should take about 15 minutes after training, but usually it took much longer and the result was a backlog of waiting customers. Sometimes she and her colleagues would need help from nearby vehicle centers.
Sometimes customers refused delivery of their cars because of damage, complicating matters, she said.
In the future, she sees fewer cars because the tax credit for Tesla customers has been lowered. She said she also worries about the competition of newcomers to the electric vehicle market like Porsche. However, that does not mean that she has lost confidence in the company.
"I'm confident it's a great product, they still have a good following, they just have to hold their own."
"So that's my shame."
A supervisor at Tesla's Fremont factory said his release was a complete shock. He liked working at Tesla and found his colleagues incredibly helpful.
"I loved it, I loved what I did, it was fast, exciting, very exhausting, challenging at best, but I loved it."
He was also good at it, he said. He said he received an excellent review in December, with a very generous performance reward. He said he had reason to believe that he would leave this round of layoffs untouched.
He was also informed on the day of the layoff that his team would be rescued. He assumed he was there. But at the end of the shift on Friday, his immediate manager asked him to pack up and go with him to the HR.
"So that's my shame," he asked his manager.
He was asked to hand in his laptop and expect paperwork from the company on Saturday.
Regarding his performance bonus for 2018, he said he had been disappointed. Due to the bonus structure of Tesla, he receives only part of his 2018 bonus.
A Tesla representative said the company offers cash options that vest quarterly over a four-year period.
"I worked hard, I got a great bonus, and they just took it away," the boss said.