Ford to cut 7,000 jobs by August, 10% of global salaried staff
New York, May 20: Ford plans to cut 7,000 jobs, or 10 percent of its global salaried workforce, as part of a reorganization as it revamps its vehicle offerings, the company said Monday.
The downsizing will involve some layoffs and reassignments of white-collar staff and should be complete by the end of August, a Ford spokeswoman said. Ford has been phasing out most sedan models in the United States as more consumers have opted for pickup trucks and sport utility vehicles.
The move, which began last year and follows some job cuts announced earlier in other regions, will lead to 800 layoffs in North America in total, including about 500 this week, said Ford spokeswoman Marisa Bradley.
The company has yet to determine all of the specifics in other regions, she said.
The actions, expected to save about 600 million a year, come as Ford ramps up investment in electric cars and autonomous driving technology, eyeing future growth in those businesses even as current profitability is tied closely to sales of conventional vehicles in North America, including its best-selling F-150 pickup trucks.
"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," Chief Executive Jim Hackett said in an email to employees.
Ford had 199,000 employees, including unionized workforce, at the end of 2018, down from 202,000 a year earlier, according to securities filings.
Ford in March announced it would eliminate more than 5,000 jobs in Germany. Bradley said Monday's figures included salaried staff in Germany affected by that move but that some of the figures in the German announcement related to hourly staff.
Ford also previously announced moves to exit the commercial heavy truck business in Brazil, restructure its Russia operations and cease production at two plants in that country while ending production at a plant in Bordeaux, France.
Ford had signaled it expected significant job cuts in April 2018 when it announced it would phase out several small models in North America.
"As we have said, Ford is undergoing an organizational redesign process helping us create a more dynamic, agile and empowered workforce, while becoming more fit as a business," Bradley said.
"We understand this is a challenging time for our team but these steps are necessary to position Ford for success today and yet preparing to thrive in the future." General Motors has also undertaken job cuts over the last year for similar reasons, announcing plans to shutter seven plants worldwide, including five in North America.
The GM announcement drew heavy criticism from US and Canadian politicians, including US President Donald Trump. Earlier this month, GM said it was in talks to sell an Ohio plant to Workhorse, a Cincinnati-based company that focuses on producing electric delivery vehicles.
Shares of Ford fell 0.7 percent to 10.22 in midday trading.
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London, Nov 22: A bomb disposal squad deployed as a “precaution” to the South Terminal of Gatwick Airport concluded an investigation into a "security incident" on Friday after making a “suspect package” safe.
The South Terminal of Gatwick Airport, the UK's second busiest airport after Heathrow, which was briefly shut owing to the incident reopened following the incident.
The Gatwick is around 45 km south of London.
Two people detained during the enquiries have since been allowed to continue their journey as the airport was opened.
“Police have concluded their investigation into a report of a suspect package at Gatwick Airport. Officers from the EOD (Explosive Ordnance Disposal) team made the package safe, and the airport has been handed back to its operator,” Sussex Police said in an updated statement.
“Two people detained while enquiries were ongoing have subsequently been allowed to continue their journeys. There will remain an increased police presence in the area to assist with passengers accessing the South Terminal for onward travel,” the statement added.
Earlier on Friday, the incident caused severe disruption at the busy airport’s South Terminal, while the North Terminal of Gatwick Airport remained unaffected.
“Police were called to the South Terminal at Gatwick Airport at 8.20 am on Friday (November 22) following the discovery of a suspected prohibited item in luggage,” a Sussex Police statement said.
“To ensure the safety of the public, staff and other airport users, a security cordon has been put in place whilst the matter is dealt with. As a precaution, an EOD (Explosive Ordnance Disposal) team is being deployed to the airport. This is causing significant disruption and some roads around the South Terminal have been closed. We’d advise the public to avoid the area where possible,” it said.
Footage on social media taken outside the airport showed crowds of frustrated travellers being moved away from the terminal building.
Gatwick said it was working hard to resolve the issue.
“A large part of the South Terminal has been evacuated as a precaution while we continue to investigate a security incident," the airport said in a social media post.
“Passengers will not be able to enter the South Terminal while this is ongoing. The safety and security of our passengers and staff remain our top priority. We are working hard to resolve the issue as quickly as possible.”
Train and bus services that serve the airport were also impacted while the police carried out their inquiries.
In an unrelated incident in south London on Friday morning, the US Embassy area in Nine Elms by the River Thames was the scene of a controlled explosion by Scotland Yard dealing with what they believe may have been a “hoax device”.
“We can confirm the 'loud bang' reported in the area a short time ago was a controlled explosion carried out by officers,” the Metropolitan Police said in a post on X.
“Initial indications are that the item was a hoax device. An investigation will now follow. Some cordons will remain in place for the time being but the majority of the police response will now be stood down,” it added.
