The employees’ salary of Tesla Inc. will reduce as much as 30 per cent to cut costs as it shutdown some operation because of coronavirus pandemic. In the U.S., the salary cut is 30 per cent for vice presidents and above, 20 per cent for directors and above, and 10 per cent for others, according to an internal memo seen by Bloomberg. However, the employees work outside the US will see a similar reduction. Those employees who haven’t assigned to the critical task and who can’t work from home will be treated as furloughed without pay, though they will keep health care benefits.
Also, in last month Tesla agreed to idle U.S. production amid authorities’ orders, choking off the supply of cars to customers. The electric-vehicle maker expects to resume normal production at its U.S. facilities on May 4, according to the memo. ‘This is a shared sacrifice across the company that will allow us to progress during these challenging times,’ the company said in the memo.
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