Ford Motor said on Wednesday it is moving forward to eliminate 1,400 U.S. salaried jobs by year end as part of a multiyear $11 billion restructuring.
The layoffs will be attained through voluntary buyouts, the automaker said in an email sent to workers. The buyouts will be offered to workers who are qualified for retirement.
“We’re in a multiyear process of making Ford more fit and effective around the world,” said Kumar Galhotra, the Ford’s Americas President in the email. “We have reprioritized certain products and services and are adjusting our staffing to better align with our new work statement.”
The automaker has said it was targeting a 10% operating margin in North America. In 2019, before the coronavirus crisis, Ford’s North American operating margin was 6.7%.
The Dearborn, Michigan-based company earlier said it expects a full-year loss due to the impact of the coronavirus. It expects a pre-tax profit of between $500 million and $1.5 billion in the third quarter, and a loss in the fourth quarter as it introduces several new vehicles.
Last year, Ford cut 7,000 salaried jobs worldwide, as well as targeting 12,000 additional layoffs and plant shutdowns in Europe. It also restructured operations in China and South America. The automaker is changing CEO on October 1 to Jim Farley from Jim Hackett.
