Tesla U.S. employees cut wages by 10% Plant resumes production on May 4

April 8 (UPI) — Electric car maker Tesla announced the latest pay cuts and vacation arrangements in an email to employees on Tuesday local time,media reported, as well as plans to resume production at U.S. factories by May 4. Tesla said in an e-mail that for U.S. employees, the pay cut for vice presidents and above is 30 percent, for directors and above, for 20 percent, and for other positions by 10 percent.

For non-U.S. employees, there will also be pay cuts, details of which will be communicated by local leadership teams in accordance with local laws and unions. These pay cuts are expected to continue until the end of the second quarter.

Tesla U.S. employees cut wages by 10% Plant resumes production on May 4

Tesla had to close its Fremont plant two weeks ago because of a “in-place asylum” ban in the San Francisco Bay Area. Tesla’s stores in many markets have also closed and demand has fallen, given the recession triggered by the new coronavirus outbreak.

So far, employees have been waiting for Tesla to announce company-wide pay cuts and vacation arrangements, but like many other companies, Tesla is now being forced to take several cost-cutting measures.

Here’s the full text of an email tesla sent to employees:

Thank you for continuing to deliver on your commitment to Tesla and our mission at this unprecedented time. We know it’s not easy to get through this difficult time, and we’re doing everything we can to keep you safe and right to know, while responding to changes around the world.

While we will continue to maintain a minimum of critical operations, unless significant changes occur, we hope to resume normal production at our U.S. plants on May 4. Until then, we must take action to ensure that we remain on track to achieve long-term plans.

Starting on 13 April, we will implement the following actions as part of a broader effort to manage costs. This is a common sacrifice for the whole company that will allow us to make progress in these challenging times.

Employee spending will be temporarily reduced: for U.S. employees, the pay cut for vice presidents and above is 30 percent, for directors and above, for 20 percent, and for other positions by 10 percent.

For non-U.S. employees, there will also be pay cuts, details of which will be communicated by local leadership teams in accordance with local laws and unions. These pay cuts are expected to continue until the end of the second quarter.

For those who cannot work from home and are not assigned to key positions, leave will be placed. During your vacation, you are still a Tesla employee (no salary) and retain medical benefits. You won’t be able to work until the end of the vacation, and we hope you’ll be back at the company by May 4.

Over the next few days, we’ll email you a leave notice with additional instructions on how to apply for unemployment benefits through your state agency. For the vast majority of employees on leave, unemployment benefits will be roughly equivalent to normal take-home pay.

Those assigned to key functions will continue to report on-site. These employees will be communicated directly to their manager or HUMAN Resources partner.

With regard to performance appraisal, salary and hourly pay adjustments will be put on hold and equity grants will be suspended. If you would like to take a voluntary vacation, discuss it with your manager and hr partner. We will continue to monitor the situation closely to ensure the safety of our employees is our top priority.

As always, for those who work on the field, if you are sick or feel uncomfortable working, contact your manager and stay at home. We respect your decision and you will not be punished. For HR-related questions, contact your Human Resources partner. Thank you very much for all you have done for the success of our company. (Small)