• In a move influenced by a company-wide restructuring effort, Ford plans to cut jobs from its global salaried workforce, which the company told Business Insider consists of about 70,000 workers.
  • Ford officials told The Detroit News that the cuts were expected to come by the second quarter of 2019 but that they didn’t know which regions would see the largest cuts and didn’t expect the work reduction to affect hourly employees.
  • Last month, CEO Jim Hackett told a Bloomberg business forum conference that metal tariffs from President Donald Trump’s trade war were costing the carmaker $1 billion.
  • According to The Detroit News, Ford employs 86,000 workers in the US and 202,000 people globally.

In a move influenced by a larger company-wide restructuring effort, Ford plans to cut jobs from its salaried workforce.

The Detroit News reported last week that Ford executives expected to make cuts globally, including in the company’s North American division, having determined that the automaker had too many “layers” of salaried workers.

Ford officials told The Detroit News that while they expected the cuts to come by the second quarter of 2019, they didn’t yet know which regions would see the largest cuts and didn’t expect the work reduction to affect hourly employees.

According to The Detroit News, Ford employs 86,000 workers in the US and 202,000 people globally. The company told Business Insider it had some 70,000 salaried workers.

“The effort is designed to support our strategic objectives, create a more dynamic and empowering work environment, and become more fit as a business,” a company representative said Wednesday.

The person said Ford would start to evaluate salaried jobs at the top of the company and work its way down.

“This allows leaders at various levels of the company to shape their organizations by focusing on the most critical work, shifting how work gets done to increase velocity and leveraging the broad base of experienced talent across the organization,” the person said.

Last month, CEO Jim Hackett told a Bloomberg business forum conference that metal tariffs were costing the carmaker $1 billion.

This is a time of transition for the venerable American automaker. The company is undergoing an $11 billion global restructuring effort under Hackett, driven in large part by changes to a domestic product line, tougher European emissions standards, and a lack of sales in Asia, according to Bloomberg.

MLive.com, the Michigan-focused news site, reported that Ford’s third-quarter US sales fell 4% to 606,939, with car sales dropping 25.7%, pickups down 9.9%, and SUVs down 2.7%.

Earlier this year, Ford announced plans to end its production of compact cars and sedans (except for the iconic Mustang) to focus more on the production of crossover SUVs, which have become increasingly popular among American consumers.

But not all is challenging for the 115-year-old company. The Ford F-150 is still the best-selling vehicle in America and has been for 35 years. In September, the company announced an all-electric SUV that would rival Tesla. And as Business Insider’s Matt Debord has said, Ford expects to have “the freshest showrooms in the industry” by 2020.

Get the latest Ford stock price here.

Let’s block ads! (Why?)


Source link