The COVID 19 pandemic has wreaked havoc across all classes and sections of the society. The economy seems to have acquired a corner position while the big businesses ponder over measures to reduce the piling up losses. In a fresh episode of companies opting for tough measures, Tesla has started to furlough its workforce.
Tesla has decided to furlough its labor that was most needed in sales and delivery. It would significantly reduce the total labor of the company. Several employees who have been furloughed interacted with the media, on condition of anonymity, and narrated the tale. Performance is not the scale that decided this swift action by authorities at Tesla.
Their superiors instructed these employees about the details and terms of the said action. As per sources, a day before this, the company had announced salary cuts and reductions to be borne by its employees. Now, a fresh email that was addressed to the company’s employees has spilled the bean over furloughing.
Earlier on Friday, CNBC had estimated that the furloughs would impact half of the total workforce or labor of the company across the whole of the United States. It has been gathered from the sources that experience and position were the factors that had been used to determine which employee stayed and who was furloughed. Indeed, the performance was not even a distant parameter.
Delivery and sales advisors who have gained an experience of fewer than two years with the brand will be the first ones to be furloughed, as per sources. It is not clear at the moment how many people shall be affected in this mass furlough in totality. The salary cuts and furloughs are known to start from April 13, 2020.
The mass furloughs were not unexpected as it seems to be. A few days earlier, the employees at Tesla had received an email from Tesla’s head of human resources, Valerie Workman. The email hinted about furloughs. The head of human resources at Tesla had also added that there would be cuts in the pay of salaried employees working in the company.
It was hardly known till then as to who would be affected. Now that employees have started getting calls explaining to them the terms of the furlough that people have started to be aware of. As for the cut in the pay, it can be as high as 30 percent for some employees to as modest as 10 percent for some, or it can remain entirely in between.
The authorities will have the final say over this, taking into account the position of the employees at Tesla. As per the email, until the end of the second quarter, the employees would be facing the reduction in their pay. The company officials have maintained that the expected production at its United States plants would remain suspended till at least May 4.
The situation has been forcibly approved due to the economic strain caused by the COVID-19 pandemic, the losses of which need to be recuperated. The company had earlier hinted that the pandemic had meant serious declines in its revenue, which it will continue to face. It has required the company to cut costs wherever possible.