just-auto.com

USA: Ford axing 4,000 'white collar' workers

By just-auto.com editorial team | 21 November 2005

Ford plans to eliminate about 4,000 white-collar jobs in North America early next year as part of what the automaker has called a painful but essential restructuring plan, according to The Associated Press.

Ford spokesman Tom Hoyt told the news agency the cuts, which will be made in part through attrition and elimination of some agency and contract positions, were outlined late on Friday in an e-mail to employees from Mark Fields, president for the Americas.

The cuts are expected to be made during the first quarter of 2006, Hoyt reportedly said on Saturday. They will be in addition to 2,750 North American salaried jobs that Ford earlier said it wanted to cut by the end of 2005. Ford started the year with about 35,000 salaried workers in North America.

AP noted that the move is the latest in a series of shake-ups and cost-cutting moves at the Dearborn-based car maker, which reported a third-quarter loss of $284 million. In North America, it lost $1.2 billion before taxes.