Ford cuts 7,000 jobs as part of company-wide 'redesign'

The layoffs will start from the US, then continue in North America and Europe

Photo: EPA Ford Motor Company President and CEO Jim Hackett

Ford Motor Company announced on Monday that it will cut about 7,000 salaried workers, or roughly 10 percent of its global global workforce, in the coming months in a cost-cutting measure that officials said would save about $600m per year. According to the company's statement, the first wave of layoffs will begin tomorrow, 21 May and include 500 employees in the US only. In an email to employees, Ford CEO Jim Hackett added that job cuts in North America would be completed by the end of the week, with layoffs in international markets to conclude by the end of August.

“Ford is a family company and saying goodbye to colleagues is difficult and emotional,” Hackett said in the email. “We have moved away from past practices in some regions where team members who were separated had to leave immediately with their belongings, instead giving people the choice to stay for a few days to wrap up and say goodbye. We also have a range of resources and services in place to support employees in managing this transition.”

Ford said the ongoing layoffs have included both voluntary and involuntary separations. 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 move comes as Ford faces calls to boost profitability globally, including in Europe, China and South America. 

“As we have said, Ford is undergoing an organisational redesign process helping us create a more dynamic, agile and empowered workforce, while becoming more fit as a business,” Ford said in a statement. “The majority of the redesign is now complete for North America and will be concluding in other regions by August. This work has resulted in some separations of salaried employees and the reassignment of others.”

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