Tesla announced on Thursday that 500 temporary workers at its gigafactory near Berlin will receive permanent contracts starting November 1.
The move reflects what the company described as an “optimistic assessment” of its electric vehicle production in Germany, reports Reuters.
The plant in Gruenheide, Tesla’s only European gigafactory, currently employs around 12,000 people. The decision follows a call from the facility’s works council head, Michaela Schmitz, urging management to reduce temporary work and increase permanent employment.
Tesla produces its Model Y compact crossover SUV at Giga Berlin, for Europe and export to surrounding areas.
Earlier this year, Tesla reduced its workforce through voluntary departures and ended contracts with some subcontractors as part of a company-wide cost-cutting initiative. In contrast, the latest announcement comes as other automakers, such as Volkswagen, consider shutting down local factories and reducing staff.
“At a time when many companies are talking about job cuts and plant closures, the news that a further 500 people will be offered a long-term perspective at Tesla in a permanent position is particularly pleasing,” Tesla said in a statement.
Tesla did not specify how many temporary workers are currently employed at the Gruenheide plant.
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