(MENAFN - Baystreet.ca)
Ford Motor Co. (NYSE:F) is eliminating 7,000 salaried jobs, or about 10% of its global white-collar workforce, amid signs that global car demand has peaked.
Cutting the positions will save Ford $600 million U.S. a year, the company said in a written news release issued Monday morning. Most of the cuts will be completed by May 24 in North America, and by the end of August in Europe, China and South America.
Ford shares closed Monday at $10.28. The stock has climbed 34% in 2019 after plunging in 2018.
The dismissals are designed to shrink Ford's management structure by a total of 20% and streamline the number of organizational layers to nine or less from 14, the company said in the news release. In the U.S., there will be 800 "involuntary separations," including 500 this week. Some 1,500 U.S. employees have already accepted voluntary buyouts, bringing the total number of salaried job cuts in Ford's home market to 2,300.
As of April 25, Ford had 196,000 employees worldwide, down from 202,000 at the end of 2017. The company-wide salaried job reductions are part of a broader $11 billion U.S. restructuring. Other changes focus on product development, such as the creation of a new vehicle architecture and design team and greater investments in infotainment, software development and electrification.
General Motors Co., Volkswagen AG and Tata Motors Ltd.'s Jaguar also are eliminating thousands of employees worldwide as the rise of electrification and self-driving vehicle technology reshapes the global auto industry.