Ford will eliminate 7,000 salaried workers by August

Ford will eliminate 7,000 salaried workers by August

In total, Ford is cutting roughly 2,300 jobs based in the US, about 1,500 of which had already occurred before this week.

Notification to North American affected employees will begin on Tuesday and the majority will be completed by May 24, he said.

Ford said today it will eliminate about 10% of its global salaried workforce, cutting about 7,000 jobs by the end of August.

A spokesperson tells 7 Action News that about 1,500 people took buyouts previous year, which will bring the total eliminations in the United States to around 2,300.

Ford has been restructuring its operations globally to improve profitability and speed product development, making or announcing cuts in Europe, South America and Russian Federation.

This news also comes after Detroit-based automaker General Motors cut some 4,000 white-collar workers after announcing a series of plant closures and manufacturing layoffs. Sales in the US, where the automakers get most of their revenue, have fallen slightly but still are strong.

It is the second major U.S. carmaker to announce redundancies, following GM which is shedding 14,000 posts.

Both companies have said the cuts are needed because the companies face huge capital expenditures to update their current vehicles and develop them for the future. GM has since announced a possible deal to sell the Lordstown plant to a startup electric vehicle maker, but it hasn't been finalized. Many have been upset that it took so long for the company to make decisions.

Most of Ford's white-collar workers are in and around the company's Dearborn, Michigan, headquarters.

The layoffs, while large, weren't as bad as many had expected.

"Ford is a family company and saying goodbye to colleagues is hard and emotional", the automaker's president and CEO writes in the email.

The redesign process will continue through the summer, and by late August Ford says they'll have eliminated about 7,000 salaried positions across the globe.

"We have moved away from past practices in some regions where team members who were separated had to leave immediately with their belongings, instead giving people the choice to stay for a few days to wrap up and say goodbye", he wrote. Hackett told employees that managers would have more direct reports to cut down bureaucracy.

Within the cuts, Hackett said it will eliminate close to 20% of upper-level managers in a move also meant to reduce bureaucracy and speed decision making.



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