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Ford to Layoff Approximately 11% of its Salaried Workers

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May 28th, 2008 by Liz Opsitnik

After Ford announced last week that it is cutting production and lowering its 2009 profitability goal, the company is now saying it will cut its U.S. salaried work force by about 10 to 12 percent.

The cuts will attempt to help Ford’s restructuring plan, which is majorly struggling due to high gas and raw materials prices.

Those being considered for the cuts are part of the company’s more than 24,000 white-collar workers.  It’s possible more than 2,000 employees will get a pink slip by the end of July, reports the Detroit News.

Ford Vice President Jim Farley said the company is also taking a look at the merit increases usually given to salaried employees in July.

As customers abandon their big trucks and SUV’s for more gas-friendly cars, Ford’s production cuts were not enough to trim the fat.  Unlike the company’s previous voluntary buyouts and early retirement offers, this new round of cuts will be involuntary.

Farley said Ford will not be the only automaker forced to cut staff.

“I would expect other car companies to make similar announcements,” Farley told his employees Friday.  “They have the same issues that we do — even Toyota.”

Ford has already eliminated 11,000 salaried positions in North America since the end of 2005 by offering voluntary buyouts and early retirement incentives.

Ford’s white-collar workers who are lucky enough to remain on the payroll might not be lucky enough to get a raise.  It’s better than the alternative of being unemployed, right?


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