Tesla has abruptly terminated its contract with MPW Industrial Services, resulting in 82 plant-level job losses at its Gigafactory in Austin, according to a WARN notice filed with the Texas Workforce Commission (TWC) on 27 August. The notice states that the layoffs, set to take effect on 1 September, are due to the unexpected cessation of the contract with Tesla.
The affected roles span a range of levels within the contractor’s operations, including 61 technicians, seven team leads, seven supervisors, and seven managers. These employees were not unionised and lacked bumping rights, as noted in the filing.
Under federal law, employers are typically required to issue WARN notifications at least 60 days in advance of mass layoffs. MPW justified its abbreviated notice by citing the abrupt nature of Tesla’s decision. “Due to the unexpected termination of a major customer contract, MPW will be permanently ceasing operations at the Tesla facility located at 1 Tesla Road,” stated the WARN notice.
MPW Industrial Services, headquartered in Ohio, specialises in industrial cleaning and facilities management. Its contract with Tesla involved servicing areas such as vehicle paint shops and battery departments. Company personnel had anticipated an enduring partnership, making the termination particularly unforeseen.
This development follows Tesla’s earlier wave of cuts at the same plant. In April 2024, the automaker dismissed approximately 2,688 employees in Austin as part of a global workforce reduction amounting to about 14,000 jobs—roughly 10 per cent of its total workforce.
The Gigafactory in Austin plays a critical role in the city’s economy, and the new cuts to MPW’s workforce are expected to reverberate through local communities. The sudden nature of the terminations—employees were given just days of notice—has heightened scrutiny of how Tesla handles contractor management during restructuring cycles.
These layoffs underscore not only Tesla’s rapid-response strategies to market shifts but also the vulnerability of non-unionised, contract staff in volatile industries. As Tesla navigates future production adjustments, similar impacts could surface within its broader supply and service network.