Ford is cutting 7,000 white-collar jobs

Ford is cutting 7,000 white-collar jobs

Ford is cutting 7,000 white-collar jobs

"To attain our competitive industry, and effect of abode Ford to bag in a like a flash-charging future, we must decrease bureaucracy, empower managers, velocity resolution making and focal point on primarily the most treasured work, and rate cuts", Hackett wrote. Experts questioned the strategy of leaving employees without much information, but Ford insisted throughout the process that it was doing it in a "thoughtful" way.

This is the second set of layoffs for Detroit-area automakers, even though they are generating healthy profits.

Ford is slashing 7,000 white collar jobs or around 10% of its compensable staff globally as a part of cost-cutting endeavor it says will conserve the company about $600 million a year.

Since Hackett took over as CEO two years ago, he's implemented an $11 billion global redesign to improve what he calls Ford's "fitness", which includes the layoffs as well as cuts to unprofitable and low-margin vehicles, including all sedans.

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. According to the correspondence, Ford will terminate 500 salaried positions on Tuesday. By the end of July, 800 USA workers will be laid off.

This comes on the heels of Ford's recent announcement that it would change its investment in its home state a bit to the tune of $900 million and 900 new jobs. Job cuts in the current plan are to be completed by the end of August in Europe, China and South America. Earlier this month, GM said it was in talks to sell an OH plant to Workhorse, a Cincinnati-based company that focuses on producing electric delivery vehicles. "We will continue to work collaboratively and respectfully without teams and other partners to ensure our designs are effective and fit and that our employees are treated fairly and with respect".

Shares of Ford Motor Co. slipped early Monday.

At the same time, a spokesperson for the company said that almost 2 300 of the affected employees were located in the United States.

Ford acknowledged in the company email that saying goodbye to colleagues is hard and emotional.

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