Monday, June 2, 2008

Ford slashing salaried jobs in the U.S.


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Ford Motor Co. will cut its U.S. salaried work force by between 10 percent and 12 percent in an effort to jump-start a turnaround plan stalling in the face of rising gasoline and raw materials prices. This could mean a potential 2,000 employees.

One detail that has been decided is that, unlike the last round of voluntary buyouts and early retirement offers, these will be involuntary layoffs. A Ford spokesperson acknowledged this was a bitter pill to swallow for a staff that has "been through a lot already," but said Ford cannot wait six months for people to make up their minds about whether to stay or go.

Ford announced last week it would cut production and no longer expects to return to profitability by 2009. The Detroit automaker didn't rule out layoffs and said it would release more detail about cost-cutting efforts in July.

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