NASCAR informed its employees on Tuesday that pay cuts will be imposed across the company until racing resumes in the aftermath of the coronavirus shutdown.
The development was made public by the Associated Press and revealed that series executives will see a 25% reduction in salary, while other employees will have their salary reduced by 20%. Employees have been urged to use a week of vacation during the next five weeks.
The reduction includes budget expenses and capital improvements.
Employees were notified of the decision by league president Steve Phelps in an email obtained by the Associated Press.
The email reads:
“With the temporary postponement of our season and the impact of the coronavirus is having on every part of our business, we will have to adjust our operations in several significant ways. We are trying to minimize expenses until we can get back to doing what we do best—holding great race events for our fans.
“These decisions are difficult but necessary for the health of our company as we work through this crisis and address the long-term business needs of our sport.”
The NASCAR season is on hiatus until at least May 7 at Martinsville Speedway in Virginia. In a media teleconference last week, Phelps said NASCAR intends to make up all lost races, while confirming that doubleheaders and midweek races are both topics of consideration.
NASCAR had contested four Cup Series races this season: the Daytona 500 and West Coast swing races at Las Vegas Motor Speedway, Auto Club Speedway of Southern California and Phoenix Raceway.
The league had attempted to run the fifth weekend of the season at Atlanta Motor Speedway at the time of the stoppage and the declaration of a national state of emergency in the United States.
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