BRISTOL — Diversified Machine will lay off 500 workers because it lost its largest contract.

The manufacturer of automotive parts, on County Road 133 in Bristol, is downsizing its facility due to the “sudden and unforeseen cancellation” of a contract with its largest customer, according to a May 20 WARN notice sent by the company to the Indiana Department of Workforce Development.

Diversified Machine is a subsidiary of Chassix, a global automotive parts supplier headquartered in Southfield, Mich.

Employees were recently notified about the layoffs, which will start next week and occur over several months, according to the notice filed by Steve McKenzie, director of operations for Chassix. McKenzie did not return a call Friday seeking comment.

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