Impact of Pandemic: Ford Undertakes Massive Lay off - Cuts Hundreds of Jobs!

Popular Automobile firm, Ford Motor Co. Announced that they will be cutting about 5% of its salaried workforce in US as a part of a major reorganization which is likely to include a massive layoff. The move is being in order to recover from the losses incurred over the past months. 

Reportedly, the automaker will be undertaking 1,400 job cuts. The step is likely to make the company more competitive as well as profitable. Ford has stated that this might be its first full- year loss in this whole decade. 

“We’re in a multi-year process of making Ford more fit and effective. Our hope is to reach fitness targets with the voluntary incentive program. If that doesn’t happen, involuntary separations may be required," Kumar Galhotra, Ford’s president of the Americas and international markets, said in a memo Wednesday to some 30,000 salaried workers in the U.S. 

Last year, Ford had cut down 7,000 salaried positions across the globe and it included 2,300 in the US. The company had a workforce consisting of 190,000 employees by the end of 2019. 

“Ford’s latest retrenchment comes as Jim Farley prepares to take over as chief executive officer on Oct. 1 from current CEO Jim Hackett. Farley has promised to swing for the fences to return Ford’s North American region to a 10% profit margin,” Hindustan Times reported. 

Reportedly, the firm has not released the financial records of buyouts. However, sources have revealed that the company is offering them to US salaried workers who have served for a period of 30 years or who are 55 or older, who have been at the job for at least five years.