Ford workers were informed by letter on Monday that 500 salaried employees are getting laid off and will have to clean out their desks by the end of the week.
And that’s just the first of a wave of layoffs in the country that is expected to impact 800 by the end of June and 7,000 globally by the end of August, Ford CEO Jim Hackett stated in a letter to all workers.
Bearing the subject line “Smart Redesign Update,” Hackett noted that the cuts will decrease the management ranks by 20 percent and lead to yearly savings to the company of $600 million.
“We also made major progress in removing bureaucracy, speeding up decision making and driving empowerment as part of this redesign,” according to Hackett.
Hackett also noted the company is attempting to make the separation as effortless as possible.
“Ford is a family company and saying goodbye to colleagues is difficult and emotional,” Hackett notes. “We have moved away from past practices in some regions where team members who were separated had to depart immediately with their belongings, instead giving people the choice to stay for a few days to wrap up and say goodbye.”
Ford’s move comes as the U.S. auto industry sees itself united in opposition to President Donald Trump’s threats to put tariffs on automobiles and auto parts imported from foreign regions such as the European Union and Japan.
There was no immediate response from the White House to Hackett’s declaration. But the layoff declaration came as President Donald Trump was heading for a rally in Pennsylvania.
Debbie Dingell, a Michigan Democrat, stated: “Congress and the Administration must work together to support manufacturing, the auto industry, and workers.”
