Tesla is cutting contracts at its U.S. auto and battery plants, according to people familiar with the matter. Media reports say the electric car maker is cutting contracts at its Fremont, California, auto assembly plant and Reno Super plant in Nevada.
The report quoted people familiar with the matter as saying the cuts affected the livelihoods of hundreds of workers. “I regret to inform you that the closure of the Tesla plant has been extended due to the pandemic of the new corona virus, and that Tesla has therefore requested the termination of all valid contracts,” Balance Staffing, a labor management company, said in a memo. “
But the labor management company also told workers that they would stay on the agency’s workforce list and find other jobs through the company’s business. In addition, contractors employed by other provisional agencies received similar notices.
Before Tesla’s Fremont plant shut down last month, the company’s car production and delivery were largely unaffected by the new corona virus outbreak.
Neither Tesla nor Balance Staff did immediately respond to requests for comment.