Ford set to lay off 7,000

About 10% of its global workforce will be rendered jobless.

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Ford, the American multinational automobile manufacturer is all set to restructure the organisation, which will require laying off thousands of employees. About 7000 people, that is, about 10 per cent of its global workforce, will be rendered jobless in the next three months.

This reduction of workforce will lead to a cost saving of approx. $600 million annually, as the senior officials will be done away with and the number of workers reporting to each manager will be increased.

Almost 1500 workers have been laid off or bought out already in the US. Another 500 or so will meet the same fate this week. Last year, 1500 workers had quit voluntarily with some opting for buyouts when the process of restricting had begun.

The maximum jobs cuts will take place within this week, as part of the fourth phase of restructuring.

The Company aims to focus on empowering managers, eliminating bureaucracy, improve the pace of decision making, concentrate on the important work and reduce costs.

In an official internal communication, it has been conveyed to the employees that unlike what was practised in the past, the employees being laid off will be allowed a few days to wind up and meet their colleagues and bid farewell. Earlier, those asked to leave were instructed to pack up immediately and leave, even without interacting with their co-workers. The Company clarified that it understands how difficult and emotional it is to leave.

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