Sun. Aug 25th, 2019

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Ford is cutting 7,000 white-collar jobs, about 10% of its salaries workforce

2 min read
Ford announces job cut

US car giant Ford is cutting 7,000 white-collar jobs, or about 10% of its salaried staff worldwide, as part of a cost-cutting effort it says will save the company about $600 million a year.

This will be made through both voluntary and forced redundancies, according to the firm.

The company has said it was undertaking a major restructuring, and on Monday said that it will have trimmed thousands of jobs by August.

This will include 2,300 cuts in the US, and will save them  $600m (£471m) a year.

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

Ford CEO Jim Hackett , in a memo to employees on Monday,said the fourth wave of the restructuring will start on Tuesday, with the majority of cuts being finished by May 24.

“To succeed in our competitive industry, and position Ford to win in a fast-charging future, we must reduce bureaucracy, empower managers, speed decision making and focus on the most valuable work, and cost cuts,” — Hackett’s wrote.

In March, Ford said it would axe 5,000 jobs in Germany, including hourly, salaried and temporary staff.

But it is not yet clear if and how the plans will affect workers in the UK, where Ford employs about 12,000 people.

On Monday, Ford’s chief executive Jim Hackett said: “The total number of positions impacted in the UK is still to be determined.”

Most of Ford’s white-collar workers are in and around the company’s Dearborn, Michigan, headquarters.
Ford also faces global challenges. The domestic unit is the strongest part of the company, and Ford reported last quarter that sales and profits increased in North America.
But it has struggled overseas, prompting significant restructuring there. Last year it reported losses in South America, Asia and Europe even as it made money in North America and from its finance arm.

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