The Tesla Inc is going to cut the contractors from their US car and battery plants, a report by CNBC on Friday, citing workers and also a contract staffing agency.

The carmaker is removing contractors at both its vehicle assembly plants of Freemont, California, and at its Giagafactory outside the Reno, Nevada, as per a report by CNBC. The cuts will affect many workers, the report stated, referring people who are familiar with the decision.

Tesla Inc to cut the contractors

tesla loses to general motors
Tesla shares dip lower than General Motors. Reuters

"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 sighted by CNBC.

Balance Staffing told workers they would stay on the agency's books and could find other work via their business, according to the report, which added that contractors hired with other temp agencies had received similar notices. Tesla's production and delivery was largely unaffected by the coronavirus outbreak in the first three months of the year, before it began suspensions at its Fremont plant last month. Tesla and Balance Staffing did not immediately respond to requests for comment.

(With agency inputs)