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Ford Offers Buyouts to More Than 15,000 Employees

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Jim Hackett

Jim Hackett, Ford’s new CEOM
Photo: Maize & Blue Nation

Ford has begun offering buyouts to more than 15,000 of its salaried employees across North America and Asia as part of an effort to reduce its workforce by 1,400.

According to a Ford spokesman, workers who choose to take the voluntary buyout packages will receive between three months’ pay to 18 months’ pay depending on various factors, including how long they have worked for Ford, their current salary and position, and other benefits.

Employees have several weeks to make a decision, and those who accept the buyout packages will leave Ford by September 30, reducing Ford’s workforce by about 10%. Of the 15,000 salaried employees who were offered the buyout packages, approximately 9,600 are in the United States, 4,141 in Asia Pacific, 1,000 in Mexico, and 600 in Canada.

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Not all departments are seeing the buyout: employees working in product development, information technology, global data and Ford Credit will not receive the offer. Sales, service, corporate finance, legal purchasing, communications, and government affairs are all affected, on the other hand. This reflects Ford’s wish to cut administration positions but remain focused on manufacturing operations and new technologies, such as self-driving cars.

Mike Moran, Ford’s global news manager, expects that the automaker will have no trouble reaching the 1,400 voluntary reductions it is targeting. The move is part of Ford’s plan to cut costs by $3 billion this year, and comes on the heels of a reorganization of the top of the company’s leadership structure. Last month, it was announced that Jim Hackett, leader of Ford’s Smart Mobility Unit, would replace Mark Fields as CEO, who had been criticized by his board for the company’s declining shares and plateauing vehicle sales.

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Source: The Detroit News