Ford Plans 7,000 Salaried Job Cuts

Ford Motor Co. CEO Jim Hackett told employees Monday the automaker is entering the final stretch of job cuts it began last year, and by September it will have shed 7,000 salaried positions globally-roughly 10 percent of its salaried work force-saving the company $600 million annually.

The number includes voluntary buyouts, involuntary separations and open positions Ford chose not to fill. Of the 7,000, about 800 involuntary separations will have occurred in the U.S., some 500 of which are scheduled to happen this week.

“Ford is a family company and saying goodbye to colleagues is difficult and emotional,” Hackett wrote in an email. “We have moved away from past practices in some regions where team members who were separated had to leave immediately with their belongings, instead giving people the choice to stay for a few days to wrap up and say goodbye.”

The process, which Ford has deemed a “smart redesign,” apparently has taken longer than initially expected. Hackett this year said the actions would be wrapped up by midyear.

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