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

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