Ford Motor Co. detailed plans of its job cuts Wednesday morning, a day after anonymous sources told the Wall Street Journal that the automaker planned a salaried workforce reduction.
The statement from Ford today confirms that the company plans to make roughly 10% cuts to its salaried workforce in North America and Asia Pacific, using voluntary retirement packages. Ford's total salaried workforce in those regions is 15,000, said Ford spokesman Mike Moran.
Additional details, from a Ford-issued statement Wednesday morning:
Ford plans to make the cuts through early retirements and “special separation packages" (also expected to be voluntary) for those not eligible for early retirement. 1,400 salaried positions will be affected, and cuts will be complete by the end of September.
Most departments in North America and Asia Pacific will be involved with the exception of: Product Development and Ford Credit, “which already are improving total operating efficiencies in other ways; plant manufacturing, which has its work force levels tied to our production”; IT, “which is restructuring to keep up with the company’s transformation to an auto and a mobility company; and Global Data and Analytics, a new skill team that is still forming.”
“Since Ford of Europe and South America already have completed people actions or have them under way, these regions will not be included.”
“Middle East and Africa also is not included, since we are just building this new business unit.”
“Full details about the voluntary packages and how the program will work will be communicated with employees in early June.”