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Ford to make job cuts as part of $11B restructuring

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Ford to make job cuts as part of $11B restructuring

Ford Motor Co. notified its approximately 70,000 employees that they will face unspecified job cuts as part of the U.S. carmaker's $11 billion multiyear restructuring plan, Bloomberg reported Oct. 5, citing Ford spokeswoman Karen Hampton.

More than 20,000 jobs from Ford's global workforce of 202,000 are estimated to go, the news outlet reported, citing Morgan Stanley. However, the car company did not confirm how many jobs will be cut, or whether it will involve involuntary separations, Bloomberg added.

Ford announced its restructuring program in July as it cut its profit forecast for 2018. At that time, CEO James Hackett said Ford believes the restructuring will provide "substantial benefits" to its growth and profitability.

The goal is "that gradually you're getting a wider, flatter organization that is really designed for speed. Inevitably, we expect that to result in some reductions, but at this point there's not a target," Hampton reportedly said.

Hampton added that it would take the automaker until mid-2019 to identify the number of salaried employees it will remove but that underperforming regions, such as Europe, Asia and South America, may see the most layoffs, according to Bloomberg.

Meanwhile, Ford Executive Chairman Bill Ford previously told reporters that the company "is making good profitability," adding that Ford continues to invest heavily in its products and its future.