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September 2, 2020

Ford confirms US white collar jobs axe

Ford has confirmed earlier reports it would cut about 1,000 salaried (white collar) jobs in the US but will actually eliminate 1,400 posts by the end of 2020, a news agency said.

By Olly Wehring

Ford has confirmed earlier reports it would cut about 1,000 salaried (white collar) jobs in the US but will actually eliminate 1,400 posts by the end of 2020, a news agency said.

The layoffs will be achieved through voluntary buyouts, the automaker said in an email sent to employees and seen by Reuters. The buyouts would be offered to workers eligible for retirement.

"We're in a multiyear process of making Ford more fit and effective around the world," Ford Americas president Kumar Galhotra was quoted as saying in the email. "We have reprioritised certain products and services and are adjusting our staffing to better align with our new work statement."

Reuters noted Ford had said it was targeting a 10% operating margin in North America, higher than the 2019 operating margin of 6.7%.

Last year, Ford cut 7,000 salaried jobs globally, as well as targeting 12,000 additional layoffs and plant closures in Europe, the report added. It also restructured operations in China and South America.

New chief executive Jim Farley replaces Jim Hackett on 1 October. 

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