Auto News 11/30
November 30th 2006 23:08
Massive downsizing: Half of Ford's hourly workers in North America to voluntarily leave
Ford Motor Co. on Wednesday said that nearly half of its U.S. workforce -- 38,000 hourly factory workers -- have accepted buyouts or early retirement packages as part of the company's massive restructuring.
Ford had hoped to cut 25,000 to 30,000 jobs during an open enrollment period that ended on Monday, but the higher figure could accelerate Ford's plans to slash costs and become profitable again while battling dwindling market share.
Ford is in the midst of downsizing its manufacturing operations in North America to match dwindling demand for its products. Still, the downsizing is the largest in Ford's103-year-old history.
About 36,000 workers could leave by next September, however final numbers may vary if employees change their minds about leaving the company.
Ford's 75,00 hourly workers were offered a choice of eight buyout packages, ranging from a $35,000 early retirement offer to a $140,000 lump sum and college tuition payments.
Ford will fill its labor crunch with part-time and temporary workers, who will receive $18.50 an hour without health benefits. The automaker is also cutting 14,000 salaried jobs. All together, about 50,000 employees are expected to leave the company.
Ford has lost $7 billion this year, but plans to cut operating costs in North America by $5 billion.
Ford Motor Co. on Wednesday said that nearly half of its U.S. workforce -- 38,000 hourly factory workers -- have accepted buyouts or early retirement packages as part of the company's massive restructuring.
Ford had hoped to cut 25,000 to 30,000 jobs during an open enrollment period that ended on Monday, but the higher figure could accelerate Ford's plans to slash costs and become profitable again while battling dwindling market share.
Ford is in the midst of downsizing its manufacturing operations in North America to match dwindling demand for its products. Still, the downsizing is the largest in Ford's103-year-old history.
About 36,000 workers could leave by next September, however final numbers may vary if employees change their minds about leaving the company.
Ford's 75,00 hourly workers were offered a choice of eight buyout packages, ranging from a $35,000 early retirement offer to a $140,000 lump sum and college tuition payments.
Ford will fill its labor crunch with part-time and temporary workers, who will receive $18.50 an hour without health benefits. The automaker is also cutting 14,000 salaried jobs. All together, about 50,000 employees are expected to leave the company.
Ford has lost $7 billion this year, but plans to cut operating costs in North America by $5 billion.
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