The Company will also be hiring new employees considering the high demand for its vehicles.
The electric car maker, Tesla Motors, has fired hundreds of employees in the recently concluded annual performance review. 400 to 700 employees have been dismissed, including engineers, managers and factory workers.
The Company says that the job cuts were part of its standard annual appraisal process, which is normal in any company. Some workers promoted, while some were given bonuses in this appraisal process. The vacant positions will be filled soon by hiring new talent.
The annual appraisal process at Tesla involves the managers and the employees discussing the results achieved and the manner in which they were achieved during the evaluation period. The discussion involves constructive feedback and recognition of top performers by giving them additional compensation, equity awards and promotions as well.
Tesla has over 33000 employees across the world, and it continues to grow and hire new employees.
Elon Musk, CEO of Tesla Motors has plans to increase the level of production of vehicles by five times, to half a million in 2018. This ambitious goal will help Tesla reach a market value of $59 billion.
Tesla electric vehicles are high in demand, and this year, it expects to deliver around 100,000 vehicles. Lakhs of customers feature in the waiting list to buy its Model 3.
Seeing this high demand, the Company is increasing its production level and will be hiring new employees in the coming years.