Under pressure to boost profit, Ford company will cut 7,000 workers by the end of August, worldwide. That means about 10% of its global salaried workforce.
The cuts include 500 salaried workers in the U.S. who will leave involuntarily this week and 800 in the U.S. by August. Most workers will be notified this week. "To succeed in our competitive industry, and position Ford to win in a fast-changing future, we must reduce bureaucracy, empower managers, speed decision making, focus on the most valuable work, and cut costs," CEO Jim Hackett wrote in an e-mail sent to all salaried workers Monday. “We also have a range of resources and services in place to support employees in managing this transition. I hope that you take a moment to thank them personally for their service and commitment to Ford," he promised.
As announced, restructuring will continue in Europe, China, South America and elsewhere with hopes of completing the reorganization by the end of August. The company committed last year to spending $11 billion to reshape its business, hoping to boost sales overseas and modernize its fleet of vehicles by focusing more on electric and autonomous driving tech. Ford and the rest of the auto industry is facing a lot of pressure to prepare itself for the future. Automakers are also preparing for a possible slowdown in auto sales and a possible slowing US economy.