Tesla announces pay cuts and worker furloughs

Enlarge / Elon Musk. (credit: Patrick T. Fallon/Bloomberg via Getty Images)

Tesla announced Tuesday that salaried workers would take pay cuts of 10 percent or more through the end of June. Most hourly workers-many of whom haven't been working since Tesla shut down its Fremont factory last month-are being formally furloughed, making them eligible to claim unemployment benefits. The changes take effect on April 13.

"We expect to resume normal production at our US facilities on May 4, barring any significant changes," the email from Tesla HR said. It said that pay cuts and furloughs were a "shared sacrifice across the company that will allow us to progress during these challenging times."

Tesla is slashing pay for vice presidents by 30 percent and directors by 20 percent. Lower-level salaried employees will see their pay fall by 10 percent. These are predominantly white-collar workers who have been able to continue working from home.

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