Ford announces more job cuts as company 'redesign' continues

Ford layoffs beginning today, leading to 7,000 cuts globally

Ford will eliminate 7,000 salaried workers by August

"To succeed in our competitive industry, and position Ford to win in a fast-changing future, we must reduce bureaucracy, empower managers, speed decision making, focus on the most valuable work, and cut costs", Hackett wrote.

"Overall, by the end of the process later in August, we will have eliminated about 7,000 salaried positions or about 10% of our global salaried workforce".

In the USA about 2,300 jobs will be cut through buyouts and layoffs, about 1,500 of which have already happened. About 1,500 already have happened.

"We will continue to work collaboratively and respectfully with our teams and other partners to ensure our designs are effective and fit and that our employees are treated fairly and with respect", the company said in a memo to employees obtained by The Detroit News".

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Today Ford Motor Co. announced that 7,000 employees around the company will lose their jobs as part of an organizational revamp.

In a letter to employees, Ford CEO Jim Hackett said the restructuring is reducing bureaucracy and making Ford "flatter" - meaning most teams have no more than nine layers of management, rather than up to 14.

Ford's massive restructuring, expected to cost about $11 billion, is created to cut costs dramatically.

This news also comes after Detroit-based automaker General Motors cut some 4,000 white-collar workers after announcing a series of plant closures and manufacturing layoffs.

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The 7,000 jobs include salaried employees who took buyouts offered in the past year, as well as jobs that were never filled and later eliminated.

The cuts come as many global automakers are struggling to cope with consumers' preference for crossovers and SUVs over sedans, slumping sales and the cost of electrifying their lineups to meet stiffer emissions restrictions in markets including China and Europe. The layoffs included closure of five factories in the US and Canada and cuts of another 8,000 white-collar workers worldwide. But Hackett has to show Wall Street that it can make more money, which means these job cuts are only the beginning.

Both companies have said the cuts are needed to prepare for the future, because the companies face huge capital expenditures to update their current vehicles and develop them for the future. Plans to cut 5,000 jobs in Germany were announced in April. In the past, laid-off workers would have had to pack up and leave immediately.

He acknowledged saying goodbye to colleagues is "difficult and emotional".

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The reorganization will involve some layoffs and reassignments and should be complete by the end of August, a Ford spokeswoman said.

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