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According to a report from CNBC, Tesla is cutting hundreds of contractors from its assembly plant in Fremont, California and its sprawling Gigafactory outside of Reno, Nevada.
“It is with my deepest regret that I must inform you that the Tesla factory shutdown has been extended due to the COVID-19 pandemic, and as a result, Tesla has requested to end all contract assignments effective immediately,” Balance Staffing, a workforce management company, said in a memo that was seen by CNBC.
The cuts affect hundreds of workers, the report said, citing people familiar with the decision. Temp workers from other staffing agencies received similar notices, according to the CNBC report.
Balance Staffing told workers they would stay on the agency’s books and could find other work via their business.
Tesla’s production and deliveries were largely unaffected by the coronavirus outbreak in the first three months of the year, before it began suspensions at its Fremont plant last month. The automaker delivered 88,400 vehicles in the first quarter of 2020, including 76,200 Model 3‘s and Y’s and 12,200 Model S’s and X’s.
Material from Reuters was used in this report.
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