Tesla Inc. told employees on Tuesday (7) that it will remove all non-essential workers and that it will implement wage cuts during the closure of its production facilities in the U.S. due to the coronavirus pandemic.
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Tesla said it plans to resume normal operations on May 4, except for significant changes, according to an email sent to US employees by internal consultant Valerie Capers Workman, seen by Reuters news agency.
The company, which suspended production of vehicle units in the San Francisco Bay Area and New York solar roofing on March 24, said by email that the decisions are part of a broader effort to manage costs and achieve long-term plans.
Tesla did not immediately respond to a request for comment.
Pay for Tesla salaried employees will be reduced from April 13 and the cuts will remain in effect until the end of the second quarter, the email said.
In the United States, workers' compensation will be reduced by 10%, directors' salaries by 20% and vice-presidents' salaries by 30%. Comparable reductions will be implemented abroad.
Employees who are unable to work from home and have not been assigned to critical factories in the workplace will be placed on leave, with workers maintaining their health benefits until production resumes, the email said.
Tesla's only American car factory employs more than 10,000 workers, with annualized production of just over 415,000 units by the end of December 2019.
Tesla said on March 20 that it believed it had sufficient liquidity to successfully navigate the long period of uncertainty, with about $ 6.3 billion in cash at the end of the third quarter.