Last week, Tesla terminated hundreds of employees for performance. The actual number has not been released, but estimates range from 400 to 1200 people. Regardless of the actual number, that’s a lot.
Usually, when companies terminate large numbers of people, they do so as part of a reduction in force or a layoff. Tesla is quite emphatic, according to the Mercury News that this is not a layoff. In fact, a Tesla Spokesperson said that they had not reported the terminations to California’s Employment Development Department, which the law requires in cases of layoffs of more than 50 employees.
Layoff or Fired? What’s the Difference?
Typically, when someone is laid off, it’s a recognition of either a business failure or a business reorganization. We say it’s not the person that is being terminated, it’s the position that is being eliminated, and the person is simply the unlucky person who happened to be sitting in that spot. Now, of course, if you have to terminate someone in relationship to a position elimination you pick the lowest performer, but there are certainly situations where a top performer can be the victim of a layoff. Once the person is terminated, the position remains unfilled. (This, of course, is a bit simplified, as there can be bumping rights, and reorganizations, and the like.)
To keep reading, click here: Tesla Fires Hundreds of Workers for Poor Performance