Ford (NYSE:F) has announced a new round of layoffs this week, informing workers that they will need to clean their desk by the end of the week.
Source: Ford
Here are eight things to know about the job cuts:
- The letter was sent by CEO Jim Hackett on Monday, asking 500 salaried workers that they were being laid off.
- The Ford layoffs are part of a broader organizational redesign effort fueled by higher import tariffs for cars and car parts coming from the European Union and Japan enacted by the current presidential organization.
- The job cuts are expected to continue, reaching 800 by the end of June and 7,000 worldwide by the end of August.
- The letter said it will cut management ranks by 20%, saving the company about $600 million a year.
- “We also made significant progress in eliminating bureaucracy, speeding up decision making and driving empowerment as part of this redesign,” Hackett wrote.
- The Ford CEO added that he hopes the departure is as painless as possible, thanking the workers for their service to the company, adding that they have “a range of resources and services in place to support employees in managing this transition.”
- Roughly 1,500 Ford workers took voluntary buyouts last year, according to company spokesman Daniel Barbossa in an email to NBC News.
- Ford’s $11 billion restructuring efforts have also led to the closures of numerous plants, as well as investing billions into electric vehicles and self-driving cars.
F stock is down about 0.2% on Monday.
