By August Ford Will Eliminate 7,000 White Collar Jobs

By August Ford Will Eliminate 7,000 White Collar Jobs

According to the company, report so far they will cut about 500 salaried workers in the United States this week and in all, 800 salaried workers in the country by the end of July. Those are layoffs by the company.

Ford Motor Company announced it will be eliminating 7,000 salaried workers by August, as part of a "smart redesign," with the North American job cuts coming in the next few days. CEO Jim Hackett announced the job cuts to the company in an email sent out Monday morning.

A spokesperson tells 7 Action News that about 1,500 people took buyouts last year, which will bring the total eliminations in the United States to around 2,300.

"The business imperatives behind Smart Redesign were compelling. To succeed in our competitive industry, and position Ford to win in a fast-changing future, we must reduce bureaucracy, empower managers, speed decision making, focus on the most valuable work, and cut costs," Hackett said in an email.

A Ford Motor Company statement reads:

We understand this is a challenging time for our team, but these steps are necessary to position Ford for success today and yet preparing to thrive in the future.

As we have said, Ford is undergoing an organizational redesign process helping us create a more dynamic, agile and empowered workforce, while becoming more fit as a business. The majority of the redesign is now complete for North America and will be concluding in other regions by August.This work has resulted in some separations of salaried employees and the reassignment of others. By the end of the process in August, we expect to have eliminated about 7,000 salaried positions or about 10% of our global salaried workforce.

Within that total, and consistent with our goal to reduce bureaucracy, we will have reduced management structure by close to 20% which will result in annual savings of about $600 million.