Tesla to cut pay after production suspended
Tesla announced on Tuesday that it will cut all salaried employees’ pay and furlough hourly workers after the coronavirus pandemic forced the manufacturer to shut production down.
“Starting Monday, April 13, we are implementing the below actions as part of a broader effort to manage costs. This is a shared sacrifice across the company that will allow us to progress during these challenging times,” the company said in an e-mail sent to employees.
“For US employees, these reductions are 30% for Vice Presidents and above, 20% for Directors and above, and 10% for everyone else,” it said.
The cuts will last the end of the second quarter and not until production resumes. In the email sent to employees, Tesla said it expects to resume normal activities in the Fremont plant in California by 4 May.
The new pay cuts follow Tesla’s first-quarter vehicle production and deliveries report, which pleased investors even though it has yet to withdraw guidance it gave investors for 2020, saying it should “comfortably exceed” 500,000 vehicle deliveries for the year.