News: Ford to axe 7,000 jobs

#Csuite

Ford to axe 7,000 jobs

American automaker Ford is planning to cut 7,000 as a part of its restructuring process.
Ford to axe 7,000 jobs

As a part of its restructuring process, Ford plans to cut 7,000 jobs or 10 percent of its global salaried workforce.

The downsizing process which will include layoffs and reassignments of white-collar staff will complete by August 15.

One of the reasons for restructuring can be contributed to Ford’s decision on phasing out most sedan models in the United States as more consumers have opted for pickup trucks and sport utility vehicles. The move, which began last year and follows some job cuts announced earlier in other regions will lead to 800 layoffs in North America in total, including about 500 this week.

The layoffs may expect to save about US$600 million a year. Ford's downsizing also comes as car sales cool in key markets, including the United States and China.

Jim Hackett, Chief Executive of Ford shared with employees in an e-mail, "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.”

Ford had 199,000 employees, including its unionized workforce, at the end of 2018, down from 202,000 a year earlier, according to securities filings.

Earlier in March, Ford announced it would eliminate more than 5,000 jobs in Germany. Bradley said Monday's figures included salaried staff in Germany affected by that move but that some of the figures in the German announcement related to hourly staff.

Topics: C-Suite

Did you find this story helpful?

Author

QUICK POLL

Is technology the answer to new-age talent acquisition challenges?