Ford forced to make latest job cuts involuntary

Posted Thu May 29 2008 7:55 AM by Kenneth Hall

Ford is continuing with its aggressive turnaround plan in its bid to recover from multi-billion dollar losses in 2007, with the latest measure, announced on Wednesday, set to shed more than 2,000 of its full-time salary jobs in North America. We’ve already seen Ford cut the number of its hourly wage-earners by 30,000 employees, and with an original goal to cut more than 45,000 staff and close 16 plants in North America we could be seeing more drastic action taken in the near future.

Unlike the last round of voluntary buyouts and early retirement offers, the latest job cuts to Ford’s salary staff are largely involuntary. Ford expects to complete the cuts by August 1 and will not be offering buyout packages, as it has in the past, to encourage employees to quit or retire, reports the Associated Press.

Declining SUV and pickup sales and shrinking market share is forcing Ford to accelerate its restructuring plans. The carmaker cannot afford to offer a voluntary separation this time because it cannot wait any longer for the staff reductions.

Ford has also announced that it will be reducing production of its pickup and SUV models and has pushed back its target for a return to profitability to after 2009.

Reader Comments

Thu May 29 2008 8:29 AM
chris says

it's funny.. when the first round of boyouts happened.. everyone said "well, I either take the buyout now, or get fired later..... hmmmmmmm"
Thu May 29 2008 9:27 AM
bc says

CEO's asleep at the helm, getting paid millions, while not leading their companies or innovating.

"Let's just lay people off rather than address the problems consumers are facing... by they way, we are releasing a phenomenal new 600 hp motor for our latest vehicle..."
Thu May 29 2008 10:10 AM
Gus says

The new CEO is doing exactly what needs to be done.
We'll see where it goes. I have some Ford stock, and I'm not selling it quite yet...

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