Ford is Cutting 7,000 Jobs

In a memo to employees, CEO Jim Hackett said the fourth wave of the restructuring will start on Tuesday.

In this Feb. 17, 2019, file photo the company logo is displayed on the grille of an unsold 2019 F150 pickup truck at a Ford dealership in Broomfield, Colo. Ford is almost finished with a major global restructuring, and by the time it ends in August the automaker will have shed 7,000 white-collar jobs. The company said Monday, May 20 that the plan will save about $600 million per year by eliminating bureaucracy and increasing the number of workers reporting to each manager.
In this Feb. 17, 2019, file photo the company logo is displayed on the grille of an unsold 2019 F150 pickup truck at a Ford dealership in Broomfield, Colo. Ford is almost finished with a major global restructuring, and by the time it ends in August the automaker will have shed 7,000 white-collar jobs. The company said Monday, May 20 that the plan will save about $600 million per year by eliminating bureaucracy and increasing the number of workers reporting to each manager.
AP Photo/David Zalubowski, File

DETROIT (AP) β€” Ford is cutting about 7,000 white-collar jobs, about 10% of its global workforce.

The company has said it was undertaking a major restructuring, and on Monday said that it will have trimmed thousands of jobs by August.

The company said that the plan will save about $600 million per year by eliminating bureaucracy and increasing the number of workers reporting to each manager.

In the U.S. about 2,300 jobs will be cut through buyouts and layoffs. About 1,500 already have happened. About 500 workers will be let go this week.

In a memo to employees, Monday, CEO Jim Hackett said the fourth wave of the restructuring will start on Tuesday, with the majority of cuts being finished by May 24.

"To succeed in our competitive industry, and position Ford to win in a fast-charging future, we must reduce bureaucracy, empower managers, speed decision making and focus on the most valuable work, and cost cuts," Hackett's wrote.

In the U.S. about 1,500 white-collar employees left the company voluntarily since the restructuring began last year, some taking buyouts. About 300 have been laid off already, with another 500 layoffs starting this week.

Most of Ford's white-collar workers are in and around the company's Dearborn, Michigan, headquarters.

More in Operations