Ford giving underperforming employees option to voluntarily take severance
In August, the automaker laid off 3,000 employees to cut costs, shift resources to EVs
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Ford Motor Company's underperforming employees will now have the option to voluntarily take severance in order to avoid enrolling in the automaker's performance enhancement program.
"Recently, updates were made to simplify the U.S. separation programs in the U.S., to reflect market practices and internal feedback. This includes an option to exit voluntarily rather than experience the performance improvement process," a Ford spokesperson confirmed to FOX Business. "These changes give employees choice and improves the overall experience."
Ford Motor Company logo, July 20, 2008 at a dealership in Hudson, Wisc. (Karen Bleier/AFP via Getty Images) / Getty Images)
A performance enhancement plan, or PEP, is designed to give employees an opportunity to improve prior to being fired by their employer. Ford's performance enhancement program typically lasts about six weeks. Well under 100 employees per year are affected by the program, the spokesperson said.
The voluntary severance option is available to lower-performing salaried employees with eight or more years of service. White collar workers who choose to voluntarily take severance will also receive benefits continuation and job placement assistance. Employees who enroll in the PEP but do not show improvement will not be eligible for severance.
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In August, the second-largest U.S. automaker laid off approximately 2,000 salaried employees and about 1,000 agency personnel in the U.S., Canada and India as part of an effort to cut costs and shift its resources to the transition to electric vehicles. Ford has roughly 30,000 salaried employees in the United States.
The spokesperson emphasized that the vehicle manufacturer is "looking at all aspects of the business to support its transformation" and that there are no pending job cuts.
Ford Motor Company
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 11.13 | +0.03 | +0.27% |
The news was first reported by The Wall Street Journal. As of the time of publication, shares of Ford are down approximately 38% year to date.
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In addition to Ford, a spokesperson for Jeep and Chrysler parent Stellantis confirmed that it is offering certain salaried U.S. employees the option to voluntarily separate from the company as part of its "transformation to become a sustainable tech mobility company and the market leader in low-emission vehicles"
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| STLA | STELLANTIS NV | 12.81 | +0.20 | +1.63% |
Stellantis' offer is available to employees who are age 55 or older and have at least 10 years of service, regardless of their eligibility for a pension, and employees with a pension who have 30 years of service. The deadline to submit is Dec. 5. Stellantis has a total of 13,000 U.S. salaried employees.