Ford: 7,000 jobs to be cut globally, 800 in U.S.

The cuts, most of which have already taken place, include salaried employees who have accepted buyouts within the past year, in addition to positions that were never filled and later eliminated, according to a Washington Post report. Approximately 20% of the positions are senior-level management roles. In the U.S., approximately 500 workers will lose their jobs this week, with another 300 or so to be cut by end of May, according to a Washington Post report. In a letter issued to employees Monday, explaining the next phase of the North American “Smart Redesign,” Ford CEO Jim Hackett said the cuts “will result in annual savings of about $600 million.” The cuts represent the latest phase of Ford’s global restructuring, meant to make the company more agile and less bureaucratic in the face of industry tumult that has forced car makers to pivot away from sedans and shutter plants nationwide. Ford is working to cut USD 25.5 billion in operating costs over the next few years, according to the Detroit News. That’s coupled with the USD 11 billion redesign, which includes the salaried workforce cutbacks. The U.S. auto industry has run into some turbulence after years of steady growth. Sales fell 5% in 2017, according to CNN Business, after climbing more than two-thirds from 2010 to 2016. Foreign car makers are streamlining their operations, too, by opening more U.S. plants, thus cutting down on shipping costs and delivery times. Consumer tastes also have changed: Americans have shifted away from sedans and smaller cars to SUVs and trucks, a trend line that prompted Ford to retool a plant making Ford Focus compacts to accommodate new Ranger pickups. Part of the industry shake-up includes the booming EV market. Major automakers have been making major investments in EV technology, and Ford is no exception. In April, Ford announced it was investing USD 500 million in EV start-up Rivian, as reported by Evertiq, to fuel collaboration on the development of a battery electric vehicle using Rivian’s flexible skateboard platform. Ford also has plans to develop two fully electric vehicles: a Mustang-inspired crossover planned for 2020 and a zero-emissions version of the best-selling F-150 pickup.