Ford Motor To Cut Salaried Workforce

by Bamidele Ogunberu Posted on October 7th, 2018

Dearborn, Michigan, USA : Ford Motor Co. ( F ) is planning cut to its salaried workforce as part of the automaker’s restructuring plan to slash costs to improve its financial health, part of Chief Executive Jim Hackett’s broader plan to squeeze costs and improve efficiencies at the struggling auto maker..

“We are in the early stages of reorganizing our global salaried workforce to support the company’s strategic objectives, create a more dynamic and empowering work environment, and become more fit as a business,” the company said.

The company does not yet know how many jobs it plans to cut and it expects to have more details by the second quarter of 2019. The No. 2 U.S. auto maker by sales said it employs 70,000 salaried workers.

The planned cuts should be decided by the second quarter of 2019, the spokeswoman said. It reflects Hackett’s “desire to have an organization that is moving faster, and part of that comes from having a flatter” management structure, she said.

In its statement, Ford said the reorganization “will result in head count reduction over time and this will vary based on team and location.” The company told employees of the plan Thursday, the spokeswoman said.

“Yesterday, we told our employees that we were in the early stages of an organizational redesign of the global salaried workforce,” Karen Hampton, the Bloomberg reported, citing the company spokeswoman. The goal is “that gradually you’re getting a wider, flatter organization that is really designed for speed. Inevitably, we expect that to result in some reductions, but at this point there’s not a target.”

On July 25, Ford announced that a revamping of the company’s operations could result in one-time charges of $11 billion over the next three to five years.

But it did not say whether this would result in job cuts or plant closures, rather indicating that it was considering redesigning certain models, reallocating cash to profitable segments and reconsidering certain strategic partnerships.

In April, Ford surprised many analysts by announcing massive cost-cutting targets and plans to phase out many sedans in North America amid surging demand for sport-utility vehicles and other trucks.

Ford said in late September that the company was seeing profits slashed by $1 billion due to tariffs imposed by President Donald Trump.

Author

Bamidele Ogunberu

Bamidele Ogunberu

Staff Writer
Phone
Email

Leave a Reply