The logo marks the showroom and service center for the US automotive and energy company Tesla in Amsterdam on October 23, 2019. (Photo by JOHN THYS / AFP) (Photo by JOHN THYS/AFP via Getty Images)

Tesla To Cut Salaries And Furlough Workers Due To Covid-19 Pandemic

US Automaker Giant Tesla Inc has told employees on Tuesday that it has decided to take strict measures by cutting salaries and furlough of all non-essential workers during a shut down and lockdown in the US because of Coronavirus outbreak.

According to the Email sent to US employees by counsel Valerie Capers, Tesla has further added that it has planned to resume all its production operations on May 4, barring any major changes.

According to Reuters, the company has suspended all its major production facilities in San Francisco Bay Area vehicle and New York Solar roof tile factory back on March 24.

Tesla has decided to cut the salaries of Vice Presidents by 30%, Directors by 20% and workers salaries to be reduced by 10%. All the comparable salary cuts will be implemented abroad.

The salary cuts will be effective from April 13 and all the salary cuts will proceed according to the plan until the end of the second quarter.

The recent deadliest wave of Coronavirus Pandemic has drastically slashed the demands for new cars and several automakers have forced furlough workers and shut down their operations to control the pandemic.

Tesla has decided that all the workers who has not been assigned for critical work and cannot work from home will immediately be furloughed until the resumption of production.

It is worth mentioning that more than 10,000 workers work in the Tesla US Auto Factory. The annual production of the company is slightly above than 415,000 units.

The CEO Elon Musk has reportedly said that the suspension of all production facilities also interrupts the planned production of its newest Model Y, which is basically a Sport Utility Vehicle (SUV). Elon Musk was expecting that the demand of Tesla Model Y would be much higher than all other model’s combined.

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