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Ford To Cut 7,000 Jobs By August; 900 This Week

May 20, 2019 - 9:52 am

DETROIT (WWJ) - Ford Motor Co. is set to cut thousands of salaried jobs across the globe.

In a statement Monday, a spokesperson for Ford said the automaker is undergoing an organizational redesign process helping it to create a "more dynamic, agile and empowered workforce, while becoming more fit as a business." 

Ford said that a majority of that redesign is now complete for North America, having resulted in some "separations" of salaried employees and the reassignment of others.

By the end of the process in August, the company plans to have eliminated about 7,000 white collar positions, or about 10 percent of its global salaried workforce.

"Within that total, and consistent with our goal to reduce bureaucracy, we will have reduced management structure by close to 20% which will result in annual savings of about $600 million," added Daniel Barbossa, Ford Communications. 

WWJ AutoBeat Reporter Jeff Gilbert says this week alone, 900 salaried workers are expected to be let go; around 500 of them in North America. 

The news, he added, did not come as much of a surprised to many Ford employees.

"Anybody who works for Ford or who has friends who work for Ford knew that there was a lot of nervousness within the company about this week; that this could be the week the cuts were coming," Gilbert said. 

About 2,300 of the 7,000 total job cuts are expected to occur within the U.S.

In a email sent to employees, Ford CEO Jim Hackett said that while this is a challenging time, these steps are necessary to position Ford for success today and yet preparing to thrive in the future.

"We will continue to work collaboratively and respectfully with our teams and other partners to ensure our designs are effective and fit and that our employees are treated fairly and with  respect.," Hackett added, in the email. "I remain in awe of the skill and dedication of the Ford team around the world, and more excited than ever about what we can accomplish together. I hope you can feel the momentum building as we work together transforming Ford into the world’s most trusted company, designing smart vehicles for a smart world."

The plan is expected to save Ford about $600 million annually.