Ford Motor Company (NYSE: F) is reducing is global workforce by 10 percent as part of its restructuring strategy to save $600 million per year.
Ford’s plan will primarily affect its white-collar workforce. The automaker is terminating the employment of its 7,000 managers and other salaried workers by August.
In an e-mail to employees on Monday, Ford CEO Jim Hackett said the wave four of the automaker’s Smart Redesign and restructuring plan “will start tomorrow” and expected to complete the process by the end of August.”
According to Hackett, the workforce reduction includes “both voluntary and involuntary separations over the past year.” He added that Ford’s global management structure will be reduced by a total of 20 percent after completing the job cuts.
Positioning Ford to succeed in the competitive auto industry
Hackett wrote, “The business imperatives behind Smart Redesign were compelling. To succeed in our competitive industry, and position Ford to win in a fast-changing future, we must reduce bureaucracy, empower managers, speed decision making, focus on the most valuable work, and cut costs.”
