Ford Cutting 10% Of Global White-Collar Workforce – Around 7,000 People Impacted

Ford continues to make cuts and their latest round of cost savings will hit its white-collar workforce pretty hard.

According to CNBC, Ford is cutting approximately ten percent of its white-collar workforce and this equates to roughly 7,000 jobs. Most of the cuts will be made overseas, but around 2,300 people in the United States will lose their job. However, it’s not as bad as the numbers suggest as a spokesperson told the publication that 1,500 of those 2,300 cuts were achieved from voluntary buyouts last year.

Management will be particularly hard hit as Ford CEO Jim Hackett sent an e-mail (PDF) saying the automaker will reduce its “management structure by close to 20%.” Those are significant cuts, but Hackett said they’re important to reduce bureaucracy and speed up decision making.

Unfortunately, employees aren’t getting much of a warning as nearly 900 jobs will be eliminated this week. Of that, approximately 500 are in the United States. An additional 300 jobs will be eliminated in America by the end of August.

While Ford used to require fired employees “leave immediately with their belongings,” the company now says separated workers will have the option of sticking around for a few days to wrap up projects and say goodbye to colleagues. The automaker also said they have a “range of resources and services” to help support people who are losing their job.

Also Read: Ford Begins Layoffs In Europe, Cuts More Than 5,000 Jobs In Germany

The cuts are expected to save Ford approximately $600 (£471 / €537) million annually and Hackett said this is important for Ford’s success as the company needs to “reduce bureaucracy, empower managers, speed decision making, focus on the most valuable work and cut costs.”

The cuts are part of Ford’s so-called “Smart Redesign” which aims to put the company in a position to “win in a fast-changing future.” Cutting costs and bureaucracy were a big part of the plan and Hackett said by the end of the year most of the company will have nine or less organizational layers – a drastic decline from the 14 layers that existed when the program began.

  • charlotteharry57

    Clearly, like GM, getting ready for the coming “Carpocalypse”. Right now, they’re making $ hand over fist selling all those way overpriced and overgizmoed SUVs, CUVs and large pickups.

    • Super Rob

      The Big 3 are cutting their own throats with the prices of pickups. Yes they are making money hand over fist. But eventually someone will come in with something at a much lower price and just hammer the full sized pick up market.

      • MarketAndChurch

        I don’t think its an issue. You have to think of the person paying $50,000 for a pickup as a customer that could have dropped that cash on an X5 or S-class. But instead of spending that money on European luxury, they’re buying a pickup. From an American company. The average vehicle selling in the United States for over 50,000 dollars is an American pickup, and better Ford GM or Dodge than one of the German big 3.

  • Paul

    Trimming the excess and redundancy is what they say most likely. So they can invest in the new tech of autonomy and the like. It’s like admitting they have too many fingers in the pie.

  • Stigasawuswrecks

    I’m glad to see that major tax they received and billions they gained helped create jobs. Oh, wait…..

    • SgtBeavis

      Are you referring to the 2009 bailout? Because, if you are, you should be aware that Ford didn’t take a dime of that. They didn’t need to. Mulally had the financing they need already wrapped up. GM and Chrysler are the ones that were bailed out.

      That said, Ford has been run like crap since Mulally departed.

      • Stigasawuswrecks

        I’m speaking about the 2018 tax cut.

        • SgtBeavis

          In that case, we are in agreement…

  • Maisch

    LoL at american traditions of leaving on the day, must make havoc within the projects. Over here when I changed job I had 3 months (this is regulated, depending on how long you worked) before i could actually go. Even that was a bit stressful if you are deep into both knowledge and projects, phasing yourself out but still keeping all the important information and knowledge spread and documented, and so nothing gets lost within all projects.

  • EyalN

    Accountants are running a car company.
    Going to defense instead of offence.
    Ford needs someone like Sergio Marchionne to run the company but alive.
    Or Carlos Ghosn but with someone checking what he is doing with the money.

    • Waleesa1

      God rest Marchionne’s soul. However, he was an accountant and a lawyer. And we all know what happened after he took over. With the exception of Ferrari, all the FCA brands frequently dominate unreliability surveys and polls.

  • R55

    “While Ford used to…”

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