Ford To Layoff A Large Number Of Salaried Workers
Ford Motor Company plans to conduct involuntary layoffs of salaried employees by August 1, 2008.
It has been told by the company officials that, Ford would cut 10 to 12 percent or more than 2,000 employees this summer.
Ford spokesman, Mark Truby said, “We’re not going to comment on internal discussions we’re having with our employees. As soon as we finalize some of these details, we’re going to tell our employees as quickly as we can.”
The severe cut in Ford’s production that has been lowering its 2009 profitability goal, has finally compelled the automaker to reach such a tough decision. The sales have slumped severely, especially for large pickups and SUVs.
With the cuts in work force, the company is expecting to restructure the slumped sales, which is mainly struggling due to high gas and raw material prices.
In the second quarter of 2008, Ford has reduced its production by 15 percent as compared to the same quarter last year. It has been expected that, the third and fourth quarter will account for a fall in production as much as 20 percent and 8 percent respectively.
The employees who will be terminated, would not be offered voluntary buyout packages with financial or early retirement incentives.
Earlier, Ford had terminated 11,000 salaried workers in North America since the end of 2005, by offering voluntary buyouts and early retirement incentives. Ford had a total of 23,700 salaried workers at the end of 2007. The large number of cut has reduced its full-time salaried workers.
