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Tesla will lay off some employees and revise salaries

Tesla recently announced the closure of its Fremont plant due to an outbreak of coronavirus in the region. Now there is information that the company is reducing wages to employees. The situation will affect everyone, from directors to ordinary employees. An email from the head of Tesla Human Resources, Valerie Kapers Workman, came to Electrek.

Tesla explained that all employees who work at home or work at “critical positions” will be cut off. Those actions are a temporary measure. At American plants, Tesla will reduce the salaries of vice presidents by 30%, directors by 20%, and employees by 10%. The company will cut anyone who cannot work remotely or falls into the category of “unnecessary.” For the vast majority of laid-off workers, unemployment benefits will be roughly equivalent to regular home pay.

Tesla Model 3
Tesla Model 3

Also, Tesla offered to employees to take unpaid leave and not go to work in case of malaise. The same letter states that the company expects to resume production in Fremont from May 4.

Tesla will report the size of reductions at non-US enterprises to local management groups following local laws and agreements with the unions. Tesla expects that these reductions will continue until the end of the second quarter and help the company “progress in these difficult times.”