Tesla reportedly has told workers to brace for pay cuts and furloughs as the Covid-19 pandemic disrupts its operations and cripples demand.
Starting next Monday, US employees at the electric car company who hold director and vice president level roles and above will see pay reductions of 20% to 30%, and “everyone else” will receive a pay cut of 10%, according to an internal email obtained by CNN Business.
Go deeper with GlobalData
The reductions are expected to be in place until the end of June. Pay rises and equity grants will also be put on hold.
Non-US employees will also face similar reductions, according to the email seen by CNN.
Tesla is running “minimum critical operations” at the moment, and expects to resume full operations at US plants in early May “barring any significant changes”, the email said, according to CNN.
But until then, the company needs to manage costs, and implement what it calls “a shared sacrifice … during these challenging times.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataEmployees who can’t work from home and haven’t been assigned to critical work on site will be furloughed, and the majority of furloughed staff will receive unemployment benefits “roughly equivalent to take home pay”, the email added.
