Furthermore, he said, “This will result in annual savings of about $600 million. We also made significant progress eliminating bureaucracy, speeding up decision making and driving empowerment as part of this redesign. These are key opportunity areas cited by all of you as part of our annual pulse survey.”
A spokesman for Ford told CNBC that most of the job cuts will happen overseas. Approximately 2,300 workers will be affected in the United States, which included 1,500 voluntary separations last year.
Around 900 Ford workers including 500 in the U.S. will be terminated this week. It will not affect the automaker’s hourly factory workers.
Ford is almost done with its restructuring in North America and will continue the process in China, Europe, South America and other international markets until the end of August.
“Even as we conclude Smart Redesign, we still have a lot of work to do in the coming months. We will continue to work collaboratively and respectfully with our teams and partners to ensure our designs are effective and fit and that our employees are treated fairly and with respect.”
