Ford to Cut 1,400 Salaried Positions in U.S. Through Buyout Initiative
Barely a full day after news broke that Ford was on the cusp of announcing layoffs, Ford announced those layoffs. On Wednesday, the automaker informed employees that it needs to eliminate 1,400 salaried jobs as part of its $11-billion restructuring program. The good news is that these cuts will be handled through retirement buyouts that won’t leave the departing workforce empty handed. The automaker’s internal memo also stated that the buyouts would be voluntary.
The Blue Oval previously said it expects a full-year loss in 2020 thanks to the pandemic, with a pre-tax profit of anywhere between $500 million and $1.5 billion in the third quarter.
Like most automakers also expecting a bad year, the company’s eager to turn things around in 2021 — and wants everyone to keep an eye on its evolving product lineup.
“We’re in a multiyear process of making Ford more fit and effective around the world,” Ford’s Americas President Kumar Galhotra said in an email first shared by Reuters. “We have reprioritized certain products and services and are adjusting our staffing to better align with our new work statement.”
A Ford spokesman confirmed the news, noting that the cuts were not compulsory while adding that additional cuts remained a possibility.
The automaker dumped about 7,000 employees globally last year, beginning 2020 with a workforce roughly 190,000 strong. Analysts suggested Ford will probably need to can thousands more in order to reach the 10 percent operating margin it seeks in North America — especially now that business has be negatively influenced by COVID-19 lockdowns. However, the brunt of the layoffs are assumed to take place in Europe (a region that has already seen plenty of cuts), as per the company’s previous messaging about its restructuring program.
[Image: Ford Motor Co.]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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But now who will they put in the dilapidated choo-choo train station?
This may sound random but the Oldsmobile name did not age well and it is no surprise it died off. I remember being young and thinking, why would you buy a car with that name. I do have respect for the 3800 though. Best thing GM ever made.