Tesla To Cut Salaries, Plan Furloughs Amid Coronavirus Crisis

The electric car maker is planning to cut salaries of its executives by up to 30 per cent apart from sending employees on a furlough.

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Coronavirus pandemic has forced Tesla to shut most of its global operations


  • Salary cuts for employees to range from 10% to 30%
  • Furloughed employees to retain healthcare benefits
  • Tesla has a workforce of over 55,000 around the world

Popular American electric maker Tesla is getting ready to take some harsh steps as it deals with the Coronavirus pandemic. The company is initiating salary cuts for employees at different levels and also asking many of them to go on forced furloughs. The top level executives of the company will see the steepest cuts that will be as high as 30%. For other workforce the cuts will range between 10% and 20%. Those who are unable to work from home and cannot be assigned critical tasks will proceed for furlough. Though they will not be paid they will still be retained as employees and keep their healthcare benefits.


Tesla had recently crossed the production milestone of 1 million cars 

A Tesla memo said, "This is a shared sacrifice across the company that will allow us to progress during these challenging times". The memo further states that the company expects to restart production in its plants located in US in the first week of May. The only Tesla facility outside of the US is located in Shanghai, China. Just last month Tesla had achieved the big milestone of making 1 million cars. Around the same time, company CEO Elon Musk in a tweet had referred to the Coronavirus panic as 'dumb'.


The company is also working on making Ventilators to take on the disease. A couple of days ago Tesla Engineers had a prototype in a new video. The company says the design for the ventilators relies heavily on their car parts enabling them to redeploy existing stock and produce the devices quickly. The number of Coronavirus related deaths in the USA have now surpassed any other nation on the globe.

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