Ford to cut salaried workforce in restructuring plan
Ford Motor Co. announced it’s in the early stages of reorganizing its more than 70,000 salaried workers globally, which will result in job cuts.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 10.81 | +0.09 | +0.79% |
While the U.S. automaker, whose shares have fallen 27 percent, year to date, was mum on how many jobs will be affected as it begins to flatten its business operations, a Ford spokesperson did say the reduction will happen “over time and it will vary based on team and location.”
“We will announce more specifics at the appropriate time,” Hallie Robinson, a Ford spokeswomen said.
The overall goal with the cuts, said Ford, is to create a more dynamic and empowering work environment and to become more “fit as a business.”
Ford is the second-largest car manufacturer in America behind General Motors with more than 85,000 U.S. employees and 201,000 globally.
Kiersten Robinson, Ford group vice president and chief human resources officer, told the Detroit Free Press last week that the process is not about cutting the headcount but rather figuring out who is needed, what is needed and where resources must be devoted. Ford employees were told about the plan last Thursday.
“It’s just launched in the past day or so. The net result of this will be a much flatter organization, less hierarchical,” Robinson told the Detroit Press. “By doing that, we’re going to change the way we work. This will allow us to make decisions faster and allow employees to have a much greater impact.”
Ford CEO Jim Hackett has long stated his goal of improving the company’s financial health. The company hired him in early 2017 after seeing its stock languish for years, despite several profitable quarters.