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Ford Motor Company confirmed Friday its intention to reorganize its workforce worldwide, to streamline its operations and create a more efficient company generating fewer white-collar jobs.
As the largest US employer in the automotive sector, Ford employs over 85,000 people in the United States and 201,000 worldwide, including approximately 70,000 employees.
No one can say yet how many jobs will be affected.
"We need to deepen the process before we know the absolute principles," said Mark Truby, vice president of global communications at Ford, during an interview with the Detroit Free Press. "What we have launched is a redesign of our hired labor force around the world – in North America, Europe, Asia and South America. … "
The Dearborn-based automaker disclosed the plan to employees Thursday, saying the entire team was participating in a comprehensive assessment to identify ways to strengthen the company, limiting bureaucracy and identifying weaknesses in the company. all areas of activity, from communications to manufacturing, through finance. human ressources.
Efficiency vs. effective
There was no mention of any specific stops or strategies. Truby said the details are ongoing in the coming months and announcements will be announced as decisions are made.
"At the highest level, it's really about changing the way we work," said Kiersten Robinson, vice president and chief human resources officer at Ford Group.
"You heard Jim Hackett (CEO) talk about fitness and the need to be more responsive, innovative and agile. That's why it's so important to think about how we are modernizing the workforce, skills and capabilities we need. Yesterday, we told our employees around the world that we were reorganizing the hired workforce. This is designed to help us become more fit as a business. "
The process is not just about downsizing, but about who is needed, what is needed and what resources are needed, she said.
"It was launched a day or two ago. The end result will be a much flatter, less hierarchical organization, "Robinson said. By doing so, we will change the way we work. This will allow us to make decisions faster and allow employees to have much greater impact. "
The company, aged 115, wants to give managers the means to exercise "greater control," said Truby. "Over time, we will have fewer layers, ultimately fewer people. The goal is to streamline the organization. It's a cascading process. This will result in downsizing.
Result: Ford begins a reorganization of its global employees to support the strategy and goals of the company. The company will interview the employees. The teams will be tighter and more autonomous.
"It's a very participatory process. People will dig and think about the organization and resources needed, "said Truby. This process will not be fully completed until the second quarter of next year. We will cross different waves. preliminary stages. "
"There is not a day when everything will be announced". By the second quarter of next year, as decisions are made with downsizing, we will announce them as we go along.
More: Impending cuts to Ford's mysterious fitness plan
More: Ford's investment grade is reduced to a notch above garbage
More: President and CEO Jim Hackett promotes the future of the Ford team while investors are cautious
Hackett said a year ago, during his 100-day report to investors, that he was considering making the company "more fit".
Ford employees were worried in August 2018 about whether "fitness" would result in job losses. The London Times announced that the European division in need of money was facing significant cuts. And Moody's Investment Services even lowered Ford's rating to a level just above that of junk.
Wall Street looking
Analysts predict that Wall Street will be pleased by the latest news.
"Many people were waiting for these changes to happen sooner," said Ivan Drury, senior director of industry analysis at Edmunds. "The new CEO arrived almost a year and a half ago."
Any company as traditional and established as Ford can probably be redesigned, especially a company that has informed the world of its intention to reduce car production and switch to SUVs and trucks, does it declared. "If I worked on Fusion or Focus, well, I would be afraid that my work would be threatened. If I work on the Lincoln Navigator, which generates a lot of profits, I do not worry too much. But there is always an initial wave of fear, frustration and confusion. This can be positive in the end. "
Some industry observers have questioned the slow deployment of Ford's plan, which will continue until spring 2019.
"Talking about dragging things out and maximizing the anxiety and anguish of employees – I have never seen a process like this hanging out in all my years in the industry," said Jon Gabrielsen, a market economist who advises automakers and automakers.
"It's going to be absolutely detrimental to Ford doing nothing for the rest of his life and damaging the local consumption of the Detroit Metro because no one dares buy anything for fear of losing their jobs," he said. he declared. limited to Ford employees. Any employee of a car manufacturer or supplier, as well as anyone in a support position, will also recognize that it could be the next company to start layoffs. "
However, the strategy described by Ford looks like a surgical strike that Wall Street will see as a way to boost profits, analysts said.
Hackett, who spent 30 years in the furniture industry, laid off 12,000 employees during the restructuring of Steelcase in Grand Rapids and earned respect for his ability to transform business.
Contact Phoebe Wall Howard: [email protected] or 313-222-6512. Follow her on Twitter @phoebesaid
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