Tesla China has reportedly laid off some of its workers at Giga Shanghai, with the layoffs affecting employees on the factory’s battery production line.
According to a report from Bloomberg, citing unnamed sources, Tesla started notifying the affected employees earlier this week. Some of the employees were given the option to transfer to another part of the factory, like the stamping area, painting, or general assembly.
Before Bloomberg’s report, a Tesla China watcher revealed on Twitter the automaker had “disbanded its export battery workshop.” With the change Tesla will no longer export batteries made at Giga Shanghai to other factories. While the change will negatively affect workers at Giga Shanghai, it should have positive impacts at the other factories where Tesla will be strengthening production of batteries.
Tesla currently assembles battery packs with parts from both LG Energy Solution and CATL at its Shanghai factory.
According to the most recent update, Giga Shanghai employs around 20,000 people. There has been no official comment on the layoffs, or any estimates on how many workers are affected.