Tesla Fires Hundreds of Workers After Their Annual Performance Review

They’re not layoffs, the automaker says.

Electric automaker Tesla Motors fired hundreds of employees this week, including workers at its Fremont, Calif. factory and corporate managers, as it tries to solve production problems for its recently released Model 3.

An estimated 400 to 700 people were dismissed this week, according to a San Jose Mercury News report published Friday afternoon. That’s between 1% and 2% of the company’s more than 33,000 employees. Former and current employees told the Mercury News that little or no warning preceded the dismissals.

A Tesla spokesman would not confirm that number but told Fortune that the move follows its annual performance reviews, which typically involve both involuntary and voluntary departures.

“Like all companies, Tesla conducts an annual performance review during which a manager and employee discuss the results that were achieved, as well as how those results were achieved, during the performance period,” a Tesla spokesman said in an emailed statement. “This includes both constructive feedback and recognition of top performers with additional compensation and equity awards, as well as promotions in many cases. As with any company, especially one of over 33,000 employees, performance reviews also occasionally result in employee departures. Tesla is continuing to grow and hire new employees around the world.”

Tesla insists that the losses are not layoffs and that it plans to backfill the positions. That’s likely accurate, at least for jobs in California. State law requires companies to notify employees of layoffs through its WARN notification system. There are no records of new layoffs from Tesla. About 200 Tesla and SolarCity employees in the company’s Roseville, Calif. offices were notified Aug. 30 that they would be terminated.

The latest cuts come as the automaker tries to fix bottlenecks on the production line for its Model 3, an all-electric model designed to appeal to the masses. Earlier this month, Tesla reported that it produced 260 Model 3 cars in the third quarter, of which it has delivered 220. That figure is far less than CEO Elon Musk’s prediction that Tesla would produce more than 1,600 of the vehicles by September.

In July, Musk tweeted a production update for the Model 3, saying the car had passed all regulatory requirements ahead of schedule. After announcing that the first 30 customers would receive the Model 3s on July 28, Musk wrote, “production grows exponentially, so Aug should be 100 cars and Sept above 1,500.”

Altogether, Musk said that third quarter production numbers for the Model 3 would be around 1,630 vehicles—a prediction off by 84%.

A Wall Street Journal report published earlier this month revealed that Tesla workers were assembling Model 3 vehicles by hand until at least early September. One of the “bottlenecks” Musk alluded to was a process that involved positioning and welding body panels by hand, rather than by precision robots, according to workers interviewed by the Journal.

Musk recently delayed the unveiling of an electric semi-truck until Nov. 16 so the company can focus its attention on production problems with its new mass-market car, the Model 3.

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AT&T Wireless Workers Try To Bring Political Pressure To End Contract Stalemate

Negotiations have dragged on since February.

As a contract standoff between AT&T and 21,000 unionized workers in its mobile business drags into a eighth month, the employees are trying to increase political pressure on the carrier.

So far, 255 state and local politicians have sent letters to AT&T CEO Randall Stephenson backing the workers, the Communications Workers of America union says. Among the senders are six Democratic senators and numerous members of California’s delegation in the House of Representatives.

“While we are aware of the changes that have taken place in the telecommunications industry, we know that AT&T wireless workers are the driving force behind your most profitable division,” 12 members of the Arizona House of Representatives wrote to Stephenson in one recent letter. “They deserve to share in the company’s success and growth.”

Still, AT&T does not appear moved by the campaign or earlier moves by the mobile workers in 36 states and Washington, D.C., including a protest outside Apple headquarters for the debut of new iPhones last month and a short strike in May that forced many wireless stores to close for a weekend.

Although the workers have concerns about wages, health benefits, and other issues, job security and sales commission rates appear to be at the center of the dispute. To highlight the issue of call center jobs being outsourced to foreign countries, some AT&T workers traveled to the Dominican Republic in early May to meet with their counterparts there who now handle AT&T customer service calls.

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AT&T said on Friday that it has been in touch with the letter writers and plans to continue to bargain with the workers, whose contract expired in February, to reach a “fair” agreement . “We regularly communicate with our stakeholders regarding labor issues and bargaining, and we’ve done so where we’ve received any letters from legislators,” an AT&T spokesman said.

The CWA says AT&T won’t negotiate over job security at call centers and retail stores where many of the employees work. “AT&T has increased its profits by cutting workers’ commissions, refused to bargain over job security even as it cut hundreds of call center jobs this year alone, and increasingly moved to low-wage contractors for its retail and call center operations,” Dennis Trainor, vice president for CWA district 1, said in a statement. “That’s not how America’s largest telecom should be acting.”

AT&T t has a long history of labor peace, though the May strike interrupted a run of more than four years without a walkout. The company says it has reached 32 agreements covering some 145,000 workers since the beginning of 2015. The strike in May, which also included 17,000 workers in AT&T’s telecom business, followed last year’s bitter, seven week strike at Verizon vz .

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