Ford Aims to Cut 1,000 U.S. Jobs Through Voluntary Buyout Plan
(Bloomberg) -- Ford Motor Co. is seeking to eliminate about 1,000 salaried positions in the U.S. through a voluntary buyout program as it tries to realign operations amid its electric-vehicle transition.
The move is designed to help Ford “match our business priorities with the critical skills needed to turn around our automotive operations” and build more electric vehicles under the Ford+ program, a spokesperson said in an email Thursday. Staffing adjustments, including hiring and separations, are part of a multiyear process to ensure talent is appropriately distributed, the company said.
Eligible employees were notified of the plans last month, Ford said. Staff members with more than 20 years will receive the largest incentives, including six months of severance and benefits, as well as reemployment assistance, according to CNBC, which first reported the buyout.
Last September, Ford said it was planning to cut 1,400 U.S. jobs through buyouts and layoffs as part of its sweeping reorganization that seeks to improve its financial health. The company posted a surprise profit in the second quarter, thanks to surging prices on models that have become harder to find on dealer lots.
The Dearborn, Michigan-based company is among the group of automakers participating in President Joe Biden’s goal to reduce emissions. Ford said it aims to have fully electric vehicles account for 40% to 50% of its U.S. sales by 2030.
©2021 Bloomberg L.P.