Ford said on Monday (20 May) it was laying off about 7,000 workers, about 10% of its global workforce, as part of a restructuring plan designed to save it US$600m a year.
CEO Jim Hackett said in an email to employees on Monday about 2,300 of the jobs being cut were in the United States, CNBC.com reported.
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In the email, reproduced on CNBC.com, Hackett said: "We are now entering the final phase of Smart Redesign. Notification to employees in North America affected by phase four…will begin tomorrow. The majority will be completed by 24 May."
He detailed how remaining managers would have more responsibility and more people reporting to them, and noted the restructuring with flattened layers and the recent creation of the new International Markets Group.
"By year-end, most of the organisation will be structured with nine layers or less… At the beginning of the redesign, we had up to 14 organisational layers," Hackett added.
"Cost reduction is a key aspect of Smart Redesign. …by the end of the process later in August, we will have eliminated about 7,000 salaried positions or about 10% of our global salaried workforce.
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By GlobalData"This includes both voluntary and involuntary separations over the past year."
Ford announces new management roles
