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Tesla plans to furlough non-essential workers and cut employees’ salaries now that the coronavirus crisis has halted production at some of its factories. The electric-car maker will furlough staff who cannot work from home and are not performing crucial work at its plants, a company official told US employees Tuesday. Tesla expects to restart normal …
Tesla plans to furlough non-essential workers and cut employees’ salaries now that the coronavirus crisis has halted production at some of its factories.
The electric-car maker will furlough staff who cannot work from home and are not performing crucial work at its plants, a company official told US employees Tuesday.
Tesla expects to restart normal operations in early May if no big changes arise, the company said. Sidelined workers will keep their health care benefits.
Tesla will also slash pay for salaried employees from April 13 until the end of the second quarter of this year, according to the company. Pay will be reduced 10 percent for workers in the US, 20 percent for directors and 30 percent for vice presidents, with comparable cuts imposed in other countries. Tesla had about 48,000 full-time employees at the end of 2019.
The coronavirus pandemic has significantly disrupted Tesla’s manufacturing operations in the US. The Silicon Valley-based company has halted production at its factories in California and New York, where officials have ordered non-essential businesses to shut down. Tesla has also greatly reduced the number of workers at its plant in Nevada.
The company helmed by CEO Elon Musk still managed to produce nearly 103,000 vehicles and deliver more than 88,000 the first three months of the year, which it called its best first-quarter performance ever. That came despite a temporary closure of Tesla’s newest factory in China, where the coronavirus first emerged.
Other large automakers such as Honda and Nissan have furloughed US workers amid the coronavirus crisis, which has caused consumer demand for cars to plummet.
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