Ford Motor Co employees are likely to be in for a shock soon.
The company is planning for a business redesign exercise and around 7000 jobs are expected to be sliced across all its facilities around the globe.
Most of these job cuts are likely to be in the white color sector. The company has stated that it will be saving over $ 600 million per year.
The company has issued a memo to its employees and stated that
“We will continue to work collaboratively and respectfully with our teams and other partners to ensure our designs are effective and fit and that our employees are treated fairly and with respect,”
The retrenchment letters are likely to be served beginning from Tuesday this week and the complete job cut process is likely to be completed by the end of August.
The 7000 jobs that are expected to out are the white-collar sector, showing the travails on the part of the company to do away with the bureaucracy.
The expected job cuts comprise 10 percent of the total salaried staff. Almost 20 percent of these job cuts are expected to be senior level management positions.
The exact details about the plans and which regions are expected to be affected are not yet available. Reports suggest that three plants in Russia, one in Brazil and another in Europe are destined to be shut down.
However, in sharp contrast to the initial analyses, the issue isn’t much severe as compared to the predictions.
It may be worthwhile to note that there were initial predictions of the likelihood of over 20000 jobs will be cut.
Incidentally, it may be worthwhile to notice that Ford has been going through a huge struggle.
Hopefully, this exercise would help it achieve a little respite. Even then, it should be a huge backlash for the employment market.