Ford has been heavily investing in new technology. This direction, together with a slight decrease in car sales, came with a considerable financial cost. To make up for its impaired funds, the automaker is going to initiate an organizational restructuring. The company has already decided to eliminate 1,400 jobs among its white-collar positions across Asia and North America.
Ford’s Latest Organizational Restructuring Includes 15,000 Early Retirement Packages
Nonetheless, this confirmation that came from an official source denied the rumors that were estimating 20,000 job cuts. However, the company is working on voluntary early retirement packages for around 15,000 of its employees. Ford is looking at an organizational restructuring within white-collar departments only such as human resources, marketing, and sales. These plans might be put into practice by the end of September.
This is the largest organizational restructuring among Ford white-collar positions since the year 2007. This was when 7,200 employees accepted voluntary leave packages. Mike Moran, the spokesman for Ford, hopes that reducing operation costs could become a reality if employees leave on their own accord.
Ford sent an internal e-mail to its employees on Wednesday. The text highlighted three core directions that the company finds crucial for its own development. These are viewed as investments in new opportunities, improving slacking departments, and reinforcing profit sources. As such, an organizational restructuring is considered as one step forward towards attaining these three goals.
Ford Might Have Reached Its Peak
However, this wave of job cuts will definitely elude certain segments. These are credit units, product development divisions, factory workers, and white-collar employees who work within Ford’s plants. Workers at information tech departments will also be exempted from voluntary retirement packages.
On the other hand, investors fear that the automaker reached its peak growth point. From here, there might be no other ways than stagnation or decline. Ford met a decreased level of sales in its most important market, North America. On the other hand, Ford gained 9% more profits in Asia. However, this market is known for its volatility and its incapacity to foster stability.
Image source: 1