Tesla Furlough Has Hit New Workers In Delivery And Sales The Worst: Report

The Tesla Inc. TSLA furlough of workers started on Friday, according to a report by TechCrunch.

What Happened

Those who have been with the company for less than two years and work in the delivery and sales departments are worst-affected, some of the employees told TechCrunch.

The automaker told employees in an email last week that all non-essential employees will be furloughed starting Monday, and the rest will get pay cuts. According to CNBC, the furlough affects about half of Tesla's employees working in delivery in sales.

Tesla management isn't basing their decision based on performance, rather on "experience and position," the employees told TechCrunch.

The automaker has been forced to shut production at its Fremont and New York manufacturing plants, and significantly reduce staff at the Nevada gigafactory, due to shelter in place orders imposed by local authorities to curb the spread of the novel coronavirus (COVID-19) pandemic.

Tesla posted better-than-expected delivery numbers for the first quarter despite the pandemic.

The Palo Alto-based company has also said it is making ventilators at the New York plant for patients who fall critically ill from infecting the deadly virus.

Price Action

Tesla shares closed 4.4% higher at $573 on Thursday.

Photo Credit: Courtesy of Tesla.