In a letter to employees, Ford CEO Jim Hackett has confirmed that the company will eliminate 7,000 jobs, representing 10% of its global salaried workforce – literally, a decimation – as part of the carmaker’s multiyear restructuring plan.
The company said Monday that the plan will save about $600 million per year by eliminating bureaucracy and increasing the number of workers reporting to each manager.
In the U.S. about 2,300 jobs will be cut through buyouts and layoffs. About 1,500 white-collar employees have already left the company voluntarily since the restructuring began last year, some taking buyouts. About 500 workers will be let go this week.
Most of Ford’s white-collar workers are in and around the company’s Dearborn, Michigan, headquarters.
To: All CDS IDs
From: Jim Hackett