Ford will lay off 1400 salaried employees through buyout by the end of the year

Published: Sep 3, 2020 15:48

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SMM: Ford reportedly said on Sept. 2 that it plans to cut 1400 salaried jobs in the United States by the end of this year as part of its $11 billion restructuring plan.

In an email sent to employees, the company said the layoffs would be made through voluntary buyouts, which would be offered to employees who were eligible for retirement.

Kumar Galhotra, president of Ford Americas, said in an email: "We are currently implementing a multi-year plan to make Ford more responsive to the requirements of the global market and to become more efficient. We have reprioritized some products and services and are adjusting our staffing to better align with our new work. "

Ford had previously said it had a target operating margin of 10 per cent in North America. Last year, before the novel coronavirus pandemic affected operations, Ford's operating margin in North America was 6.7 per cent.

Ford, based in (Dearborn) in Dearborn, Michigan, had previously said it expected to lose money this year as a result of the epidemic. Ford expects its third-quarter pre-tax profit to be between $5 billion and $1.5 billion. In the fourth quarter, the company will lose money because several new cars will be launched.

Last year, Ford laid off 7000 salaried workers worldwide, planned to cut an additional 12000 jobs in Europe, closed some factories and restructured its operations in China and South America. On October 1st this year, Ford will usher in a new CEO, Jim Farley, who will succeed Hankette (Jim Hackett) as CEO.

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Ford layoffs cars

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