Ford to cut 7,000 jobs globally by August

Car giant Ford is cutting about 7,000 jobs by the end of August, about a tenth of its global workforce.

The car maker will reduce its US workforce by 2,300 as it seeks to save $600m (£470m) per year.

Most of the jobs to go are management roles, Ford said. Cuts are to be made through a mix of voluntary and compulsory redundancies. Around 1,500 staff have already left and a further 500 will leave involuntarily this week.

By the end of August, Ford projects to see 7,000 voluntary and involuntary redundancies globally.

In a memo to employees on 20 May, chief executive Jim Hackett said the fourth wave of the restructuring will start on 21 May, with the majority of cuts being finished by 24 May.

“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,” Mr Hackett wrote.

In the US about 1,500 white-collar employees have left the company voluntarily since the restructuring began last year, with some taking buy-outs.

Around 300 workers have been made redundant already, with another 500 lay-offs expected this week.

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

TNT Business

Photo Credit: Google Maps

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