Tesla to furlough workers, cut employee salaries due to coronavirus

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NEW YORK (REUTERS) - Tesla Inc told employees on Tuesday (April 7) it would furlough all non-essential workers and implement salary cuts during a shut down of its US production facilities because of the coronavirus outbreak.. Read more at straitstimes.com.

NEW YORK - Tesla Inc told employees on Tuesday it would furlough all non-essential workers and implement salary cuts during a shut down of its US production facilities because of the coronavirus outbreak.

The company, which suspended production at its San Francisco Bay Area vehicle and New York solar roof tile factories on March 24, said in the email the decisions were part of a broader effort to manage costs and achieve long-term plans.The coronavirus pandemic has slashed US demand for cars and forced several other automakers to furlough US workers.

In the United States, workers' pay will be cut by 10 per cent, directors' salaries by 20 per cent and vice presidents' salaries by 30 per cent.Employees who cannot work from home and have not been assigned to critical work onsite factories will be furloughed, with workers maintaining their healthcare benefits until production resumes, the email said.

Tesla's sole US auto factory employs more than 10,000 workers, with annualised production of slightly more than 415,000 units by the end of December 2019.

 

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