Ford Motor Co. will cut roughly 10 percent of its global salaried staff by August as part of a companywide “redesign,” the company told employees Monday. The move will eliminate 7,000 white-collar jobs and save the U.S. auto giant about $600 million a year.
The cuts represent the latest phase of Ford’s global restructuring, meant to make the company more agile and less bureaucratic in the face of industry tumult that has forced carmakers to pivot away from sedans and shutter plants nationwide. Ford is working to cut $25.5 billion in operating costs over the next few years, according to the Detroit News. That’s coupled with the $11 billion redesign, which includes the salaried workforce cutbacks.
“We understand this is a challenging time for our team, but these steps are necessary to position Ford for success today and yet preparing to thrive in the future,” the company said in a statement.
