The United States based global auto company Ford Motors is set to lay off about 7000 of its staff that who are salaried which would also have about 10 per cent of its global workforce, the company announced, as the struggling second largest US auto manufacturer tries to implement a turnaround plans for it. The company said that the move would help the company make savings of up to $600 million annually.
Ford CEO Jim Hackett said in an email to employees Monday that the company would complete the job cuts – many of which had already been announced by the company earlier, by August of this year. The company also said that most of the job cuts would be for positions outside of the US and American job cuts would account for about 2,300 of the total retrenchments. Voluntary buyouts from last year also accounted for 1,500 of the 2,300 U.S. job cuts, said a company spokesman.
In an effort by the company to reduce the layers of bureaucracy, about 20 per cent positions that are of the upper-level managerial ones would be completely eliminated, Hackett also said.
Voluntary buyouts and involuntary layoffs both make up the total job cuts. The company expects that it would cut about 900 of the 7,000 job cuts this week itself of which 500 would belong to the jobs in the US. The remaining 300 U.S. layoffs will be complete by the end of August.
While announcing the continuation of the organizational rehash in Europe, China, South America and some of the other international markets by till the end of August, the organization restructuring exercise of the company in North America is almost complete, said the Michigan-based automaker.
“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 letter.
Its plans for cutting down of its workforce Europe had also been announced previously by the US auto maker and in January this year, it said that it had finalized plans for retrenchment of thousands of its employees working of its European operations as a part of its effort for restructuring of its operations there. Many of the job cuts announced Monday were part of those planned European layoffs, a company spokesman was quoted in the media as saying.
(Adapted from CNBC.com)