Ford Motor Co. will cut roughly 10 percent of its global salaried staff by August as part of a companywide "redesign." The move will eliminate 7,000 white-collar jobs and save the U.S. auto giant about $600 million annually.
"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," the company said in a memo to employees obtained by the Detroit News.
Ford is also looking to restructure its ranks globally, including in Europe, China and South America. The 7,000 job cuts include salaried employees who took buyouts within the past year, as well as jobs that were never filled and later eliminated. About 20 percent of the positions were senior-level management roles, the News reported.
In North America, about 500 workers will lose their jobs this week; the total will climb to 800 total by June, according to the Detroit Free Press. Some contract employees in the U.S. also will be let go.
By some estimates, the cutbacks could have been much more severe; one Wall Street analyst had projected as many as 20,000 job losses worldwide.
CEO Jim Hackett and other executives had signaled that Ford planned to trim costs and its management ranks. Hackett told employees that managers would have more direct reports to cut down bureaucracy.
Ford is not alone. General Motors has laid off roughly 4,500 workers since early 2017. In March, GM shut down production in Lordstown, Ohio, an area where manufacturing jobs have declined in recent years. About a quarter of America's metro areas have been similarly affected, many in the Rust Belt, according to data provided by the Federal Reserve Bank of New York.
Last week, President Donald Trump said he would hold off, for six months, on deciding whether to put import taxes on foreign cars. The auto tariffs would have had a particular impact on Europe and Japan. Trump announced the delay after a Commerce Department report found that rising imports of foreign autos and auto parts would have consequences for national security by threatening American automotive research and development.
This article was written by Rachel Siegel, a reporter for The Washington Post.
https://www.inforum.com/business/markets/1339973-Ford-to-cut-7000-jobs-as-part-of-company-wide-redesign
2019-05-20 15:00:00Z
52780300379698
Bagikan Berita Ini
0 Response to "Ford to cut 7000 jobs as part of company-wide 'redesign' - INFORUM"
Post a Comment