DETROIT (WWJ) – Ford Motor Co. has announced about 1,400 job cuts coming this summer, all of those expected to be salaried employees.
The automaker confirmed that number Wednesday after reports this week that hundreds of layoffs were coming to boost profits.
WWJ AutoBeat Reporter Jeff Gilbert says the company is cutting about 10 percent of salaried personnel in its North American and Asian Pacific workforce through what they call a “voluntary reduction program” — using early retirement and special separation packages.
“We remain focused on the three strategic priorities that will create value and drive profitable growth, which include fortifying the profit pillars in our core business, transforming traditionally underperforming areas of our core business and investing aggressively, but prudently, in emerging opportunities,” the company said in a statement.”
“Reducing costs and becoming as lean and efficient as possible also remain part of that work, including plans to reduce 10 percent of our salaried costs and personnel levels in North America and Asia-Pacific this year, using voluntary packages.”
Ford said its European and South American operations have already cut workers and won’t be affected. Also left out will be Ford Credit, and those working in IT and plant manufacturing.
The company said details about the voluntary packages and how the program will work will be communicated with employees next month, with the job cuts completed by the end of September.