Tesla is cutting pay for all salaried employees in the US starting April 13th. Employees who ca n’t work at home during the coronavirus pandemic are on unpaid leave.
Salaried employees at the vice-president level and above will have their pay cut by 30 percent. Everyone else will receive a 10 percent pay cut. The pay cuts will last through the second financial quarter, which ends in June.
It’s unclear how many hourly workers will be placed on unpaid leave. Tesla employs around 50,000 people worldwide. Anyone who can not work from home will be affected by the furlough.
There is no specific mention of Elon Musk in the email. Musk is a few years into a $ 2.6 billion compensation plan at Tesla, though he has not accepted the state-mandated minimum wage salary in the past.
Employees will get a specific notice via email with’additional instructions on how to apply for unemployment benefits through [ their ] state agency’. They will’remain an employee of Tesla (without pay)’ while on furlough, and keep their healthcare benefits.
Tesla’s Fremont, California factory says all the extras wo n’t be taken out.’we are devastated by this, we all want to get back to work,’ one hourly employee said.
The employee, who was granted anonymity to speak freely about the situation, said their team is happy not to be putting coworkers’ health at risk during the pandemic.
Tesla temporarily shut down its electric car factory in California on March 23. The company has also shrunk its workforce at the Nevada Gigafactory, where it makes batteries and parts for the model 3.
Workman said in Tuesday’s email that the company wo n’t resume production at its US facilities until at least may 4th. California’s stay-at-home order currently runs through May 3rd, but can be extended.
Pay cuts and furloughs are part of a’broader effort to manage costs’.’this is a shared sacrifice across the company that will allow us to progress during these challenges,’ she said.
Tesla announced the suspension of operations at the California and New York factories last month. The company cited its $ 6.3 billion cash stockpile and a recent $ 2.3 billion raise as reasons for shareholder reassurance.
‘we believe this level of liquidity is sufficient to successfully navigate an extended period of uncertainty,’ the company wrote at the time.
Nissan and Honda announced tens of thousands of hourly factory workers were being put on furlough. Hours before workman’s email went out, the automakers are taking similar actions as they head into what is expected to be a far worse second quarter for new vehicle sales.
Thank you for your continued commitment to Tesla and our mission during this unprecedented time. We are doing everything we can to keep you safe and informed while also navigating the changes around the world.
We expect to resume normal production at our U.S. facilities on May 4. We are continuing to keep only minimum critical operations running.
Starting Monday, April 13, we are implementing the below actions as part of a broader effort to manage costs. This is a shared sacrifice across the company that will allow us to progress during these difficult times.
Pay will be temporarily reduced for salaried employees. Salaried employees will be able to pay for their own salaried employees.
For U.S. employees, these reductions are 30 % for vice presidents and above. 20 % for directors and above, and 10 % for everyone else else else.
For non-U.S. employees, there will also be comparable reductions. The specifics will be discussed by the local leadership team in accordance with local laws and works-councils.
These reductions are expected to be in place until the end of Q2. This is expected to lead to an increase in number of safety measures.
Employees who ca n’t work at home and have not been assigned to critical work onsite will be furloughed.
Under furlough, you remain an employee of Tesla (without pay) and retain your healthcare benefits. You will not report to work until the furlough ends and you are directed to return by management, which we expect to be May 4.
A furlough notice will be emailed to you in the coming days. Additional instructions on how to apply for unemployment benefits through your state agency.
Unemployment benefits will be roughly equivalent to normal take home pay. For the vast majority of furloughed employees, benefits will spines.
Certain employees will be assigned to critical functions and they will continue to report onsite. Those employees will still be communicated to directly by their manager or HR partner.
For the merit review cycle, salary and hourly rate adjustments will be put on hold. For the cycle, salaries and rate adjustments are set to be on hold.
If you want to take a voluntary leave of absence, please discuss with your manager and HR partner. Equity grants will be on hold as well.
Our top priority is to ensure the safety of our employees. If you are sick or are uncomfortable coming to work, please contact your manager and stay at home.
We respect your decision and you will not be penalized. For HR-related questions, contact your partner or email address.