7K White-Collar Workers Losing Jobs at Ford

Ford is cutting about 7,000 white-collar jobs, which would make up 10% of its global workforce. The company said the plan will save about $600 million per year by eliminating bureaucracy and increasing the number of workers reporting to each manager, per the AP. In the US, about 2,300 jobs will be cut through buyouts and layoffs. About 1,500 already have happened, and about 500 workers will be let go this week. In a memo to employees Monday, CEO Jim Hackett said this wave of a companywide restructuring will start on Tuesday, with the majority of cuts being finished by May 24.

"To succeed in our competitive industry, and position Ford to win in a fast-charging future, we must reduce bureaucracy, empower managers, speed decision-making and focus on the most valuable work, and cost cuts," Hackett wrote. In the US, about 1,500 white-collar employees have left the company voluntarily since the restructuring began last year, some taking buyouts. About 300 have been laid off already, with another 500 layoffs starting this week. Most of Ford's white-collar workers are in and around the company's Dearborn, Mich., headquarters.

(More Ford stories.)