Electric Vehicle (EV) maker Tesla announced to employees on Tuesday morning that it will be temporarily reducing salaries and will furlough non-essential workers until May 4 in the US, as the automaker curbs its operations due to COVID-19.
Employees who cannot work from home and have not been assigned critical onsite positions will be furloughed until May 4 and the pay cut is expected to last until the end of June.
In an email sent out to employees by the company’s head of North American HR and in-house counsel Valerie Workman reads, “While we are continuing to keep only minimum critical operations running, we expect to resume normal production at our US facilities on May 4, barring any significant changes. Until that time, it is important we take action to ensure we remain on track to achieve our long-term plans.”
Salaried employees at the vice-president level and above will have their pay cut by 30 per cent. Directors and above will have their pay cut 20 per cent. Everyone else will receive a 10 per cent pay cut, reports electrek.co.
The pay cuts and furloughs will begin on April 13, the media reported. Furloughed employees will remain employees of Tesla without pay and will receive their healthcare benefit.
Tesla said that workers outside the US will see “comparable reductions.”
The company is expected to resume vehicle production on May 4 in California- a day after a local-government shut-down order currently is scheduled to be lifted.
The EV maker temporarily closed its Fremont factory from March 23 following a shelter-in-place order put out in the San Francisco Bay Area to curb the coronavirus spread.
The company has also suspended most of its operations at its solar panel factory in Buffalo, New York.