Ford layoffs hit 7,000 jobs worldwide, hundreds in US

Ford Motor Company on Monday informed employees that it would lay off about 7,000 salaried workers, or 10 percent of its global workforce, in the coming months in a cost-cutting measure that officials said would save about $600 million per year.

The first wave of layoffs will begin Tuesday and include 500 salaried workers in the U.S. this week. In an email to employees, Ford CEO Jim Hackett said job cuts in North America would be completed by the end of the week, with layoffs in international markets to conclude by the end of August.

“Ford is a family company and saying goodbye to colleagues is difficult and emotional,” Hackett said in the email. “We have moved away from past practices in some regions where team members who were separated had to leave immediately with their belongings, instead giving people the choice to stay for a few days to wrap up and say goodbye. We also have a range of resources and services in place to support employees in managing this transition.”

Ford said the ongoing layoffs have included both voluntary and involuntary separations. Aside from cutting costs, the automaker said the restructuring will streamline its decision-making process at the management level.

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In total, Ford is cutting roughly 2,300 jobs based in the U.S., about 1,500 of which occurred through voluntary severance agreements last year.. Most of the cuts are expected to impact workers at its headquarters in Dearborn, Michigan.

“As we have said, Ford is undergoing an organizational redesign process helping us create a more dynamic, agile and empowered workforce, while becoming more fit as a business,” Ford said in a statement. “The majority of the redesign is now complete for North America and will be concluding in other regions by August. This work has resulted in some separations of salaried employees and the reassignment of others.”


The layoffs come as Ford faces calls to boost profitability, especially overseas.

The Associated Press contributed to this report.