Ford announces plans for more layoffs amid new restructuring efforts
9 October 2018
Ford Motor Company announced plans for further cost-cutting measures last Thursday, including the layoff of an as yet undisclosed number of salaried employees by the second quarter of 2019. Ford employs over 200,000 globally, of which approximately 70,000 are salaried positions.
“Over time, we’ll have fewer layers, ultimately less people,” said Mark Truby, vice president of global communications. “The goal is to streamline the organization. It’s a cascading process. It will mean a reduction in workforce.”
Ford already cut 1,400 salaried positions in 2017 via early retirement incentives and buyouts. Several thousand more jobs will likely be eliminated, according to company spokesperson Karen Hampton.
The reductions will reportedly come as part of the $11 billion in global restructuring costs announced earlier this summer. That package is in addition to $25.5 billion in cuts to operational costs the company is planning. Ford, following a similar move by Fiat Chrysler, also announced this spring that it would cease nearly all production and sales of passenger sedans in the US. For its part, General Motors has laid off thousands of workers over the last year, cut multiple shifts at its Lordstown, Ohio, assembly plant, and is reportedly considering shutting down one or more of its car assembly plants altogether.
The media has previously speculated that Ford may target its money-losing European and South American operations for layoffs and plant closures. The company has reportedly considered either selling sections of its overseas businesses or forming “partnerships” with competitors such as Volkswagen. Such an eventuality echoes the ultimately unsuccessful…