DEARBORN, MI — Ford is laying off workers, according to reports, and some 7,000 people will be impacted in a company-wide “redesign.”
An email reportedly went out Monday morning from CEO Jim Hackett announcing a series of changes, including the fact that the company will cut 500 salaried workers in the United States this week and a total of 800 by June, reports say.
WDIV reported that most cuts in the first round will impact Dearborn workers at the headquarters.
By August, Ford expects to see 7,000 voluntary and involuntary separations across the world, the Detroit Free Press reported.
According to the Detroit Free Press:
In the letter to employees, with the subject line “Smart Redesign Update,” Hackett wrote:
The letter continues, “We are now entering the final phase of Smart Redesign. Notifications to employees in North America affected by wave four of Smart Redesign will begin tomorrow (May 21). The majority will be completed by May 24.”
He noted that restructuring will continue in Europe, China, South America and elsewhere with hopes of completing the reorganization by the end of August.
“The time and effort from so many of our team members is helping to make us a stronger company, well positioned for the future,” Hackett wrote.
The company said Monday that the plan will save about $600 million per year by eliminating bureaucracy and increasing the number of workers reporting to each manager, KTLA reported.
The cut amounts to 10 percent of Ford’s global salaried workforce.
Congresswoman Debbie Dingell (D-MI) released the following state in response to the announcement of staff reductions:
“Whenever we hear bad news about a domestic automaker, it reminds us of the fragility of manufacturing in this country and the importance of public policies to ensure we maintain a strong base in this country. This announcement, recent GM plant closures as well as their salary layoffs, and other signals inside the industry show we have much work to do.
“Congress and the Administration must work together to support manufacturing, the auto industry, and workers. Within the auto industry we need stable and consistent trade policies. It is critical we stay at the forefront of innovation and technology, which includes getting a regulatory framework to support autonomous vehicle development and investing in electric vehicle infrastructure. On the environmental front, companies need certainty and one national standard for fuel economy. All manufacturing needs a level playing field to compete in a global marketplace and to succeed.”