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Ford announces thousands of white collar job losses

The car giant will complete the restructuring by August.

The Ford company logo is displayed on the grille of an unsold 2019 F150 pickup vehicle (David Zalubowski/AP)
The Ford company logo is displayed on the grille of an unsold 2019 F150 pickup vehicle (David Zalubowski/AP)

Car giant Ford is cutting about 7,000 white-collar jobs, about 10% of its global workforce.

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

The company said that the plan will save about 600 million US dollars per year by eliminating bureaucracy and increasing the number of workers reporting to each manager.

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Ford Transit vans in a factory (Chris Ison/PA)

In the US about 2,300 jobs will be cut through buy-outs and lay-offs.

About 1,500 already have happened while around 500 workers will be let go this week.

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 Jim Hackett, Ford chief executive

In a memo to employees on Monday chief executive Jim Hackett 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,” Mr Hackett wrote.

In the US about 1,500 white-collar employees left the company voluntarily since the restructuring began last year, some taking buy-outs.

About 300 have been laid off already, with another 500 lay-offs starting this week.

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

PA

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