The Ford Motor Co. is going to lay
off about 5% of its American salaried workers. The company is taking this step
as part of a broader restructuring, to reduce the damage caused by the Corona
crisis. Under this, Ford is cutting 1,400 positions. In the last ten years, the
company is expecting the biggest loss this year.
This layoff is part of a global
overhaul designed to make the company more competitive and profitable. "We
have been in the process of making Ford more fit and effective for years,"
said Ford's president of the US and international markets, Kumar Galhotra, in
his memo to 30,000 salaried workers in the US on Wednesday "Our Hope for
Voluntary Incentive Program" Along with reaching fitness goals. If this
does not happen then involuntary separation may be required. "
Ford laid off 7000 employees from
around the world last year. In the first phase of the multi-year makeover
campaign, 2300 of the layoff workers were from the US only. The carmaker said
the move is expected to save $ 600 million a year. At the end of 2019, there
were 190,000 employees worldwide. This new round of layoffs at Ford begins as
Jim Farley prepares to take over as CEO on October 1 from current CEO Jim
Hackett. Farley has promised to bring Ford's North American region back at a
10% profit margin.
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