Tesla has unexpectedly terminated a contractor’s contract at Gigafactory Texas, ensuing within the layoff of 82 employees who have been supporting the automaker’s manufacturing on the large manufacturing facility in Austin.
MPW Industrial Companies Inc., an Ohio-based industrial service supplier specializing in cleansing and facility administration, has issued a brand new WARN discover, confirming that it’ll lay off 82 employees in Texas as a consequence of Tesla unexpectedly ending its contract with the corporate.
Listed here are the small print from the WARN discover:
- State / company: Texas Workforce Fee (TWC).
- Discover date: August 27, 2025.
- Workers affected: 82
- Doubtless efficient date: September 1, 2025
- Context from the submitting/letter: layoffs tied to an sudden termination of a serious buyer contract (Tesla—Gigafactory Texas, 1 Tesla Street); positions embody 61 technicians, 7 workforce leads, 7 supervisors, 7 managers; no bumping rights; employees not union-represented.
In April 2024, Tesla initiated waves of layoffs on the plant, ensuing within the dismissal of greater than 2,000 staff in Austin, Texas.
Since then, Tesla’s gross sales have been in a gentle decline. Whereas the automaker is anticipated to have a powerful quarter within the US in Q3 because of the finish of the tax credit score, gross sales are anticipated to say no additional in This autumn and the primary half of 2026.
Many business watchers have anticipated Tesla to provoke additional layoffs because of the state of affairs.
Electrek’s Take
We could also be seeing the beginnings of a brand new wave of layoffs at Tesla, because the automaker usually begins with contractors.
To be truthful, Tesla may additionally probably finish the contract unexpectedly for different causes, however the timing does align with the necessity to minimize prices and employees forward of an inevitable downturn in US EV gross sales.
I believe it’s inevitable that we begin seeing some layoffs. I believe Tesla must decelerate manufacturing within the US to keep away from creating an oversupply, particularly in This autumn-Q1.
