After Tesla lost its head of business development not one month ago, a guy who left the company after 11 years claiming he wants to spend more time with his family, and just a couple of weeks after its technology director (a battery veteran) unexpectedly quit (and these are just two of Tesla’s growing management exodus), the company decided to fire hundreds of its employees (blue collar workers) this week, including engineers, factory workers and managers, all these despite Tesla’s claims about having troubles with expanding its product/manufacturing line.
The mass layoffs were estimated to be between four hundred and seven hundred employees getting fired this week, and that’s because Tesla refused to declare exactly how many of its workers were given the pink slip. Tesla’s Fremont factory employs approximately 10,000 workers, yet it lost $336,000,000 in 2017’s 2nd quarter alone, while Tesla burned through a record 1.16 billion dollars (in cash) in the same Q2, which makes for 13 million dollars per day.
In a bizarre statement, Tesla claimed that the 700 layoffs did not constitute…well,layoffs per se, but performance based “departures”, which are not subject to state notifications, hence the secrecy over the exact number of people fired. Also, the company claims that the mass layoffs actually boosted worker morale, as high performing workers have been rewarded (Tesla claims some of the workers received various bonuses and/or promotions), though it’s not entirely clear how the so called exit events could boost a Tesla’s employee morale.
Whatever the reason behind mass layoffs at Tesla is, one thing becomes obvious: the company is confronting a management exodus, which saw an impressive list of senior level departures in just the past 3 months, and now we have mass layoffs of blue collar workers. What’s next?
Record-high fraudulent stock price, here we come.