Ford to cut 10 per cent of global workforce

by May 21, 2019Blog, News

Car giant Ford has announced that it is set to cut around 10 per cent of its global workforce as it cuts around 7,000 white-collar jobs.

Ford is undertaking a major restructure, which will see it cut jobs in Europe, and the company plans to have trimmed thousands of jobs by August this year.

This major restructuring plan will help save the company around $600m (circa £471.4m) per year, eliminating bureaucracy, whilst increasing the number of people who report to each manager.

“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.”

Jim Hackett – Chief Executive, Ford

Most of the white-collar staff at Ford are based in and around the company’s headquarters in Dearborn, Michigan.

The US will see 2,300 jobs cut through buy-outs and lay-offs, 1,500 of which have already been made. A further 500 workers are set to lose their jobs this week.

Ford released a memo yesterday which revealed that the next wave of restructuring would take place this week.

In the memo, chief executive Jim Hackett said: “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.”

The restructuring began last year, during which time roughly 1,500 white-collar employees voluntarily left the company.

It has not been revealed yet, how this will affect Ford’s staff here in the UK, where they have around 12,000 employees.

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