Ford Motor to layoff 500 salaried workers this week, 800 total by June

Detroit Free Press

DETROIT — Ford workers opened their email Monday to find a letter from CEO Jim Hackett with an 8:30 a.m. time stamp and an explanation of how many salaried workers would be leaving the auto company this week and why.

The company will see 500 salaried workers in the U.S. leave involuntarily this week, and 800 total in the U.S. by June, Ford said. By the end of August, Ford projects to see 7,000 voluntary and involuntary separations globally.

However, the letter does not specify how many people in Dearborn or Michigan would be impacted. Employees interviewed by the Free Press have indicated a significant portion would be leaving world headquarters. A Ford spokesman declined to comment.

In the letter to employees, with the subject line “Smart Redesign Update,” Hackett wrote:

“Team,

“As we enter the final weeks of Smart Redesign in North America, I want to update you on our overall progress. But first, I want to thank you for your focus and dedication … 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. This required intensive work across multiple layers of our company.”

The letter continues, “We are now entering the final phase of Smart Redesign. Notifications to employees in North America affected by wave four of Smart Redesign will begin tomorrow (May 21). The majority will be completed by May 24.”

He noted that restructuring will continue in Europe, China, South America and elsewhere with hopes of completing the reorganization by the end of August.