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Tesla will reportedly cut salaries and furlough hourly workers a month after its CEO Elon Musk called the coronavirus panic “dumb.”
The EV manufacturer will furlough employees who cannot work from home and those who aren’t performing essential tasks at its plants, according to an internal company email obtained by CNN Business.
Starting Monday, most U.S. employees will receive a pay cut of 10%, while some senior staffers will see pay reductions of 20% to 30%, CNN Business reports.
The changes are expected to last until May 4. Tesla could not be immediately reached for comment.
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The coronavirus crisis previously pushed the automaker to temporarily shutter its car manufacturing plant in Fremont, California, and suspend most operations at its solar panel factory in Buffalo, New York. The automaker’s Shanghai factory temporarily shut down at the end of January but reopened in early February.
In March, Tesla’s CEO caused a stir after he chimed in about the outbreak on Twitter. “The coronavirus panic is dumb,” the billionaire tech tycoon said, sparking a debate over whether hysteria surrounding the respiratory illness was overblown.
There have been over a million confirmed cases of coronavirus globally, and over 12,000 deaths in the U.S.
Other large automakers such as Honda, Nissan and Ford have furloughed employees amid the pandemic as consumer demand for new cars plummets and plant shutdowns continue.
Follow Dalvin Brown on Twitter: @Dalvin_Brown.
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