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Ford Motor Co. will remove about 10% of its paid staff worldwide by August as part of a "redesign" of the company. This measure will eliminate 7,000 white-collar jobs and save the American auto giant about $ 600 million a year.
"We will continue to work respectfully with our teams and other partners to ensure that our designs are effective and responsive and that our employees are treated with fairness and respect," said the company in a note to employees. by the Detroit News.
Ford is also seeking to restructure its ranks globally, including Europe, China and South America. The 7,000 job cuts include salaried employees who have bought back during the past year, as well as jobs that have never been filled and then removed. About 20 percent of the positions were management positions, the newspaper reported.
In North America, about 500 workers will lose their jobs this week. the total will climb to 800 by June, according to the Detroit Free Press. Some contract employees in the United States will also be fired.
According to some estimates, the reductions could have been much more severe; A Wall Street analyst had forecast up to 20,000 job losses worldwide.
President and CEO Jim Hackett and other leaders have indicated that Ford is considering cutting costs and management positions. Hackett told employees that managers would have more direct connections to reduce bureaucracy.
Ford is not alone. General Motors has fired about 4,500 workers since the beginning of 2017. In March, GM shut down production in Lordstown, Ohio, in an area where manufacturing jobs have declined in recent years. About a quarter of the US metropolitan areas were affected in the same way, notably in the Rust Belt, according to data provided by the US Federal Reserve in New York.
Last week, President Donald Trump announced that he would wait six months before deciding whether to impose taxes on importing foreign cars. Car rates would have had a particular impact on Europe and Japan. Trump announced the delay after a Commerce Department report revealed that rising imports of foreign automobiles and auto parts would have national security implications by threatening automotive research and development. American.
This article was written by Rachel Siegel, a Washington Post reporter.
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