Tuesday, August 4, 2020

Tesla decides to cut the wages of its employees

The coronavirus epidemic has taken down most of the countries of the world. Due to it, many industries have been affected and some have also been shut down. The automotive industry is among the top industries that are paying a lot during the COVID-19. Almost all the big companies have to cease their work due to the spread of the pandemic. Last week, Tesla also decided to do the same, since the safety and security of the employees is the most significant thing for the company. Also, the company decided to cut some percentage of wages for their salaried workers temporarily.

How much is the reduction in wages of Tesla’s employees

Tesla suspended the production of its electric vehicle for almost two months. Hence to decrease the expenses in these months, the company decided to deduct some percentage from the employees’ salary. As per the email received by one of the employees, the deduction is different for different posts. For U.S. employees, the reduction in wages is different from those of other countries.

The reduction is 30% for vice president and above, 20% for directors and above and 10% for all other employees. For non-US employees, the cut n wages is almost comparable. Also, the people who are unable to do work remotely, the company has decided to give unpaid leave. The furloughed employees can still avail of all the healthcare facilities available. Further, these employees can take advantage of unemployment benefits until further notice.

Tesla is prepared to make a comeback

The company declared that the production could restart from May 4, but it will take almost a couple of weeks to come back on track. However, the company claimed that Tesla already crossed the mark of 1,000,000 units of production, and around 84,000 customers took their vehicle home in Q1. Tesla said that with this small sacrifice from the employees will help to bounce back after this situation. Also, around 30,000 units are all ready to go for sale after this pandemic ends. It will help to meet the company’s needs for almost two weeks.

Source: CNBC, The Verge

Join our writing team and develop your writing skills, as you see your articles featured on Apple NewsGoogle News, and all around the worldSubscribe to our newsletter, What Just Happened, where we dive deep into the hottest topics from the week!

More from Coronavirus – News Landed

Make a COVID-19 vaccine before we know it works, expert says
The dead may be buried in New York parks, Mayor de Blasio suggests

Popular Stories – News Landed

President Trump on Joe Exotic ‘Tiger King’ pardon, “I’ll take a look”
Scientists discover an ancient underwater forest that may help produce new medicines

Comment Below

Featured Stories

Gandhi could become the first non-white person on the British currency

The Britan Government is considering minting a coin to commemorate India's independence leader Mahatma Gandhi. This may...

President Trump blocking people on Twitter in violation of First Amendment, lawsuit claims

President Trump is being sued for blocking people on Twitter. A free-speech organization, The Knight First Amendment...

Latest Stories

VIVO voluntarily pulls itself out of title sponsorship for IPL 2020

IPL: India's most prosperous Premier League has its Title Sponsor in question after the recent attack against...

A massive explosion in Beirut port, at least ten dead and many injured

A massive explosion shook the Lebanese capital, Beirut, ahead of the verdict in a trial over the...

Egypt’s government invites Elon Musk over after he tweeted that aliens built great pyramids

Elon Musk, CEO of SpaceX and Tesla Inc, made it into headlines claiming that Aliens had built...

Related Stories

How to attend Tesla’s Battery Day in-person event at Fremont, California

Tesla recently fixed the date for its Annual Meeting of Shareholders and Battery Day event as September...

TSLA target reaches $2,322, defying gravity with astronomical increase

“You know what a fugazi is?” It’s how Mark Hanna’s (Matthew McConaughey) greets us in The Wolf...