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Ford to cut up to 12% of salaried jobs

Ford to cut up to 12% of salaried jobs

Siddarth Raja May 28th, 2008 Siddarth Raja By Siddarth Raja Author May 28th, 2008
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December 31st, 1969 Having already cut close to a quarter of its North American employees in its bid to return to profitability, Ford has told its remain staff that more job cuts are set to come and this time it would be the fulltime salary employees getting the boot. During a meeting with employees from its marketing and service division on Friday, Ford vice president Jim Farley said that salary staff numbers would be cut by between 10 and 12% in an effort to overcome the pressure of rising fuel prices, slowing demand and rising material costs on the carmaker’s bottom line. Ford will also reduce bonuses and merit increases it usually gives salaried employees in July. According to The Detroit News, other departments are being told to develop similar plans. Ford’s human resources chief said the 10 and 12% numbers are still only estimates and that final details are still being processed, however, with more than 24,300 white-collar workers in the United States, Canada and Mexico even lower estimated will see thousands of workers handed a pink slip this July. Unlike the last round of voluntary buyouts and early retirement offers, these will be involuntary layoffs. Ford has already eliminated 11,000 salaried positions in North America since the end of 2005, however, most of these were through voluntary buyout and early retirement incentives.
Ford to cut up to 12% of salaried jobs

Ford to cut up to 12% of salaried jobs

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Having already cut close to a quarter of its North American employees in its bid to return to profitability, Ford has told its remain staff that more job cuts are set to come and this time it would be the fulltime salary employees getting the boot. During a meeting with employees from its marketing and service division on Friday, Ford vice president Jim Farley said that salary staff numbers would be cut by between 10 and 12% in an effort to overcome the pressure of rising fuel prices, slowing demand and rising material costs on the carmaker’s bottom line.

Ford will also reduce bonuses and merit increases it usually gives salaried employees in July. According to The Detroit News, other departments are being told to develop similar plans.



Ford’s human resources chief said the 10 and 12% numbers are still only estimates and that final details are still being processed, however, with more than 24,300 white-collar workers in the United States, Canada and Mexico even lower estimated will see thousands of workers handed a pink slip this July.

Unlike the last round of voluntary buyouts and early retirement offers, these will be involuntary layoffs. Ford has already eliminated 11,000 salaried positions in North America since the end of 2005, however, most of these were through voluntary buyout and early retirement incentives.

Tags: Industry

Posted in: Ford, News


Comments (2 total)

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  1. By HECTOR #1, Posted: 5/28/2008

    Well, this just takes me entirely by surprise! I thought that casket on wheels called the Flex was going to be the next big thing to save Ford and return it to profitability!

  2. By simple #2, Posted: 5/29/2008

    This is what their note to all thier employees would be like:

    "Dear fellow staff members,

    We would like to thank you for outstanding contributions to Ford and for having faith and believing in our dream of making desirable products in the North American. With the exception of the Mustang and F-Series, most of our great products are designed, manufactured and sold outside of the US. We have refused for several years to implement the same design and quality strategies as we do in the European and Australian markets, we do not intend on doing so in the forseeable future. Since we are too stubborn to produce the cars we do in other markets, we feel we have wasted your talent and have fooled you into thinking you were working for a properly managed company that values its employees, thier talents and efforts. We will no longer be needing you as part of our shrinking team and talent. For those of you who were looking at managerial positions, we are sorry to say that those positions are only open to the incompetent, untalented with very poor managerial skills. We apologize for this great inconvenience. Once again, than you for efforts and dedication for Ford.

    Sincerely yours,

    The Ford Management Team"

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