Yahoo Finance Ford to cut 7,000 workers, starting with 900 this week
Ford Motors plans to globally slash 7,000 managers’ jobs by this August, which equates to about 10 per cent of its white-collar workforce across the globe.
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The job cuts were announced via email by chief executive Jim Hackett yesterday, CNBC reported.
The terminations are part of Ford’s restructuring plan, which is designed to save the automaker US$600 million (AU$868 million) annually.
Job losses will mostly happen overseas, with around 2,300 of the cuts coming from within the US, of which 1,500 were voluntary redundancies from last year.
About 900 of the cuts are expected to happen this week, 500 of which will be in the US, and the remainder of the cuts will be completed by the end of August in Europe, China and South America.
Bloomberg also reported the job cuts were part of a broader $11 billion restructure, which would see Ford focus on product development, like the creation of a new vehicle architecture and design team, and great investments in electrification.
The layoffs won’t impact Ford’s hourly factory workers, but around 20 per cent of upper-level management jobs would be eliminated as the company moves to reduce bureaucracy.
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