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.