Ford is cutting 7,000 white-collar jobs

The 88th Geneva International Motor Show

Ford layoffs beginning today, leading to 7,000 cuts globally

Ford Motor Co said on Monday it will eliminate about 10% of its global salaried workforce, cutting about 7,000 jobs by the end of August as part of its larger restructuring in a move that will save the No. 2 automaker $600 million annually.

"As we have said, Ford is undergoing an organizational redesign process helping us create a more dynamic, agile and empowered workforce, while becoming more fit as a business", Bradley said.

About 800 USA workers will be losing their jobs between now and August. About 1,500 have left voluntarily or with buyouts, while another 300 have already been laid off. Some contract employees in the USA will also be let go as part of the cuts.

According to the company, those employees affected will begin being notified on Tuesday, and they expected to have a majority of the notifications for North American employees done by May 24. Sales in the USA, where the automakers get most of their revenue, have fallen slightly but still are strong.

Factory workers have not been affected by the restructuring thus far, as the company has retooled vehicle plants so they can build more popular trucks and SUVs.

It is the second major USA carmaker to announce redundancies, following GM which is shedding 14,000 posts. About 5,000 blue-collar positions were cut, but most of laid-off factory workers in the US will be placed at other plants mainly that build trucks and SUVs.

"Ford is squeezing every cent they can out of the current business by cutting employees, cutting products and getting out of unprofitable businesses so they can put more money into future technology like electric vehicles, autonomous vehicles and mobility services", said Michelle Krebs, an analyst with car-shopping researcher Autotrader.

The cuts brought withering criticism of GM from President Donald Trump and Congress, especially the closing of a small-car factory in Lordstown, Ohio.

"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".

"Ford is a family company and saying goodbye to colleagues is hard and emotional", the automaker's president and CEO writes in the email. Hackett told employees that managers would have more direct reports to cut down bureaucracy.

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