Ford to Cut 4,000-5,000 N. American Jobs
Ford (F), the world’s second-largest automaker, said Friday that it will begin a “voluntary separation” program to eliminate between 4,000 and 5,000 jobs by the end of the year.The Dearborn, Mich.-based company said it expects the cuts, which will all take place in North America, would be carried out primarily through retirements.
“The voluntary separation program is a difficult but necessary action,” said Jacques Nasser, Ford president and chief executive officer. “These actions will help us operate the business more efficiently, streamline our organization and align our skill base with future needs.”
As a result of the separations, Ford predicted it would be hit with a one-time, after-tax charge of nearly $700 million, or 40 cents per share, in its fiscal fourth quarter.
The cuts are the latest in a series of actions taken by the company to improve efficiency in North America. Already this year, Ford has eliminated a shift at a truck plant in Michigan, eliminated overtime at numerous facilities, implemented a hiring freeze and reduced travel and the number of contract workers.
“The North American market has become fiercely competitive,” Nasser said. “Although we have reduce total costs nearly $7 billion over the last four years, we need to continue to accelerate our efforts to improve our efficiencies, while protecting important new product plans.”
Ford has faced several other problems this year. Earlier this month, it offered to settle suits related to ignition problems in its cars and light trucks to the tune of $1 billion, according to The Associated Press.
Also, Bridgestone/Firestone is blaming Ford as the tire maker defends itself in the first lawsuit dealing with rollovers and tire blowouts on the popular Ford Explorer. Dr. Frank Rodriguez is suing Bridgestone/Firestone for $1 billion over the paralysis of his wife, who was injured when their sport-utility vehicle rolled over in March of 2000, AP reported Friday.
(Click here for the full press release.)
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