Ford Will Have Shed 7,000 Salaried Jobs by August

May 20, 2019 at 12:16 PM

Ford Motor Co. will cut its worldwide white-collar staff by 7,000 people, or about 10%, by August, The Detroit News reports, citing an internal memo.

Ford notes that most of the dismissals, many of which involve buyouts, have already been completed. The News says Ford has eliminated about 20% of its senior managers.

The cuts, which will include 500 dismissals in the U.S. tomorrow and 300 more by August, will save about $600 million annually, according to the company. The reduction, which includes some contract workers, is part of Ford’s plan to slash its operating costs $25.5 billion.

CEO Jim Hackett has said he aims to trim Ford’s management structure to nine levels from the 14 that existed when he took over two years ago.