Tesla is letting go of its U.S. car and battery plants contract staff, They predicted hundreds would be affected by the cuts.
Health directives enforced to curb COVID-19 spread — have forced the maker of electric vehicles to wind down the production of new vehicles.
The cuts follow the production and distribution report for Tesla’s first-quarter car, which delighted investors the company shipped around 88,400 cars and produced 103,000 in Q1.
According to three employees and correspondence, Tesla is laying off contractors from its U.S. car and battery plants.
The company is cutting contractors from its workforce, both at its vehicle factory in Fremont, California and at the Gigafactory outside Reno, Nevada, where Tesla produces signature battery packs that power its electric vehicles and energy storage devices. According to estimates by people familiar with the change, the cuts impact hundreds who asked for anonymity because they are not authorized and not allowed to discuss internal matters with the media.
Temps many of whom have served for years at Tesla, others planning to step into full-time jobs were told late this week by their staffing agencies of the cuts.
A memo from Balance Staffing to dismissed employees said: “It is with my deepest regret that I must inform you that due to the COVID-19 pandemic, the closure of the Tesla factory has been extended and, as a result, Tesla has demanded that all contract assignments be terminated immediately effective.”
The staffing agency assured workers that they would remain employees of Balance Staffing, and through their company, they could pursue other jobs. Balance Staffing also vowed that it would work hard to get the contractors back to Tesla in the future, if possible, and told the staff that the Tesla dismissals were not a result of the quality of their jobs, but rather of the tough business conditions.
According to the staff contractors working by other temp agencies got similar notifications.
Tesla did not respond to requests for comments immediately.
On Friday, after the company announced first-quarter vehicle deliveries that delighted investors — Elon Musk’s electric car venture delivered about 88,400 vehicles and produced 103,000 in Q1 2020, Tesla’s shares grew more than 5 percent on a down day for markets.
On the way to achieving those figures, Tesla battled local health orders in Alameda County, where its car assembly plant is located, which would allow it to wind down to minimum basic operations as early as 17 March. Instead, the Fremont plant remained completely operational until the end of the day on 23 March, approximately a week longer than other businesses in the city, though coping with Local Authorities as to whether or not Tesla was deemed to be a “necessary company” and therefore exempt from orders.
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