Tesla cuts contractors from California, Nevada factories as shutdown extends

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Tesla Inc is axing contractors from its American car and battery plants, CNBC reported on Friday, mentioning workers and a contract staffing agency.

The electric automaker is cutting contractors at both its vehicle assembly plant located in Fremont, California, and at its Gigafactory located outside of Reno, Nevada, according to the CNBC report.

The cuts affect hundreds of employees, the report said, citing people knowledgeable with the decision.

“It is with my deepest regret that I must tell you that the Tesla factory shutdown has been extended due to the COVID-19 pandemic, and as a result, Tesla has requested to put an end to all contract assignments effective immediately,” Balance Staffing, a workforce management company, stated in a memo sighted by CNBC.

Balance Staffing told employees they would stay on the agency’s books and could find other work through their business, according to the report, which added that contractors hired with other temp agencies had received the same notices.

Tesla’s production and delivery was largely unaffected by the spread of coronavirus in the first three months of the year, before it started suspensions at its Fremont plant last month.

About 329,636 people in the US have been confirmed as being infected with the coronavirus. The virus has killed 9,420 people in the country.

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