Tesla (TSLA) - Get Report is now officially among the ranks of companies across the U.S. that are both cutting salaries and also furloughing workers as the most pervasive economic downturn in history continues to take its toll.
The electric car maker will cut salaries by as much as 30% and also furlough some of its U.S. workers after the electric carmaker was forced to wind down production because of the coronavirus pandemic.
Starting next Monday, U.S. employees at the electric car and solar battery system maker 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.
The reductions are expected to be in place until the end of June. Pay rises and equity grants will also be put on hold.
Employees who haven’t been assigned to critical tasks and who can’t work from home will be furloughed without pay, though they will keep healthcare benefits, the internal email said.
Tesla had initially kept its U.S. operations running as the coronavirus washed up on U.S. shores and as California imposed the first statewide lockdown in the country, deeming producing Tesla vehicles as an “essential service.”
However, on March 18, the sheriff of the California county where its sole U.S. assembly plant is located ordered the plant closed amid the state’s shelter-in-place order.
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