Tesla fires hundreds of employees with temporary contracts at US car and battery factories, where activities are stopped due to restrictions imposed by authorities because of coronavirus, three employees said.
The company reduces the number of contractors in its workforce, both at the vehicle factory in Fremont, California and at the battery factory near Reno, Nevada.
“I must inform you with deep regret that the closure of the Tesla plant has been extended due to the COVID-19 pandemic and, as a result, Tesla has called for immediate termination of all temporary contracts,” says a memo from the human resources company Balance Staffing.
The recruitment company told the workers that they will remain employees of Balance Staffing and that they will be able to get other jobs through it. Balance Staffing has also made efforts to bring contractors back to Tesla in the future, if possible, and reassured them that these redundancies do not reflect the quality of their work, but the difficult economic conditions.
On Friday, Tesla shares rose more than 5%, due to a negative stock market evolution, after the company reported vehicle deliveries in the first quarter that pleased investors. Thus, Tesla delivered in the first three months of this year about 88,400 vehicles and produced 103,000.