Ford Cutting 10% Of Its Global Workforce

Ford Motor says it will eliminate about 10% of its global salaried workforce, cutting about 7,000 jobs by the end of August as part of its larger restructuring in a move that will save the second-biggest carmaker $600m (roughly R8.7bn) annually.

Ford CEO Jim Hackett said in a Monday e-mail to employees that the cuts include both voluntary buyouts and layoffs, and a spokesperson added it freezes open positions as well. About 2,300 of the affected people are employed in the US, the spokesperson said.

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.

“To succeed in our competitive industry, and position Ford to win in a fast-changing future, we must reduce bureaucracy, empower managers, speed decision-making, focus on the most valuable work and cut costs,” Hackett said in the e-mail.

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

Restructuring work continues in Europe, China, South America and the International Markets Group and the Dearborn, Michigan-based company expects to complete the process in those markets by the end of August, Hackett said. -Reuters