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Ford is cutting 7,000 white-collar jobs

This Feb. 15, 2018, file photo shows a Ford logo on the grill of a car on display at the Pittsburgh Auto Show. Ford is recalling nearly 1.3 million Focus compact cars in the U.S. because a fuel system problem can cause the engines to stall without warning. Photo: AP/Gene J. Puskar, File
This Feb. 15, 2018, file photo shows a Ford logo on the grill of a car on display at the Pittsburgh Auto Show. Ford is recalling nearly 1.3 million Focus compact cars in the U.S. because a fuel system problem can cause the engines to stall without warning.

May 20, 2019 09:04 AM

Ford is cutting about 7,000 white-collar jobs, which would make up 10% of its global workforce.

The company has said it was undertaking a major restructuring, and on Monday said that it will have trimmed thousands of jobs by August.

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The company said that the plan will save about $600 million per year by eliminating bureaucracy and increasing the number of workers reporting to each manager.

In the U.S. about 2,300 jobs will be cut through buyouts and layoffs. About 1,500 already have happened. About 500 workers will be let go this week.

In a memo to employees, Monday, CEO Jim Hackett said the fourth wave of the restructuring will start on Tuesday, with the majority of cuts being finished by May 24.


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"To succeed in our competitive industry, and position Ford to win in a fast-charging future, we must reduce bureaucracy, empower managers, speed decision making and focus on the most valuable work, and cost cuts," Hackett's wrote.

In the U.S. about 1,500 white-collar employees left the company voluntarily since the restructuring began last year, some taking buyouts. About 300 have been laid off already, with another 500 layoffs starting this week.

Most of Ford's white-collar workers are in and around the company's Dearborn, Michigan, headquarters.

Hackett said in the memo that the company is departing from past practices and letting laid-off employees stay a few days to wrap up their jobs and say good-bye to colleagues. In the past, laid-off workers would have had to pack up and leave immediately.

"Ford is a family company and saying goodbye to colleagues is difficult and emotional," Hackett wrote.

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Credits

The Associated Press

(Copyright 2019 by The Associated Press. All Rights Reserved.)

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