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AUTOMOBILE

Ford to lay off 10 percent of its global workforce amid major restructuring

Ford to lay off 10 percent of its global workforce amid major restructuring
The Siliconreview
21 May, 2019

Ford, an American multinational automaker made an announcement that it is laying off 10 percent of its salaried workforce that constitutes 7,000 white-collar jobs around the globe.  20 percent of this will be top-level managers, who will be terminated as an effort to flatten the company’s organizational structure. While 10 percent is the permanent job holders, some contract workers might also lose their jobs. However, Ford didn’t specify the number.

Among the 800 job cuts in North America, as announced by Ford, 500 will be let go this week.

The automaker informed that it is undergoing major restructuring which was estimated to be $11 billion.The layoff will be finished by August.Apparently, 7,000 job cuts have been followed by the company’s decision to close a plant and leave the commercial truck market of South America. It is a cost-cutting strategy and by implementing this, Ford will reportedly save $600 million per year by banishing bureaucracy and increasing the number of staffs working under one manager.

"To achieve success in this competitive industry, and position Ford as a winner in a fast-changing future, we must reduce bureaucracy, speed up decision making,empower managers, and focus on the most valuable work and cost-cutting," wrote Jim Hackett, Ford’s CEO. He also added that it is emotionally difficult to bid adieu to the employees. 

Ford has a total of 200,000 workers globally including non-salaried workers.