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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Will give suitable answer on L&O situation in Karnataka during winter session: Minister Parameshwara
Bengaluru (PTI): Home Minister G Parameshwara on Saturday said that he will give a suitable response in the state legislature about the law and order situation in Karnataka, if the opposition raises the matter to target the government.
Opposition BJP has made it clear that the law and order situation will be among the main issues that it will raise during the winter session.
The winter session of the Karnataka legislature will begin in Belagavi on December 8 and will go on till 19th of this month.
"I will give a suitable answer (in the Assembly), if they (opposition raise), as to how the law and order situation is in Karnataka and in BJP-ruled states. Also, how law and order was there when the BJP was in power in the state, and how it is now with figures," Parameshwara said in response to a question.
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Speaking to reporters here, he said he is not saying that there have been no incidents in the state, but it has to be told as to how the situation was there during the BJP's rule and how it is now.
Asked about how the government will defend notorious criminals and a terror suspect allegedly enjoying preferential treatment inside the Parappana Agrahara Central Jail, the home minister said, "When the majority of the incidents took place, which government was there? All this will be informed in the Assembly when the issue is raised."
Admitting that such incidents have occurred under the current government's tenure too, he said, appropriate action has also been taken against those involved and the officials responsible. "But, old videos were circulated and it was projected as it took place now. I will explain each incident," he added.
To a question on Special Investigation Team (SIT) probe into allegations of "multiple murders, rapes and burials" in the temple town of Dharmasthala, Parameshwara said, he would inform the factual position to the legislature, if raised in the House.
"SIT has submitted the report to the court. They have also submitted it to the government. If the issue is raised, we will inform the house. Factual position has to be told. What is there to hide?"
Asked about his meeting with senior Minister Satish Jarkiholi, amid leadership speculation in the state, Parameshwara said, some time the meeting with Jarkiholi might be on work-related matters as he holds a major PWD portfolio, while sometime it will be for casual political discussions.
"What is there to hide in it? We have met in the past too," he added.
