Ford to cut 1,400 U.S. salaried jobs through buyouts by year end
DETROIT (Reuters) - Ford Motor Co <F.N> said on Wednesday it is targeting the elimination of 1,400 U.S. salaried jobs by year end as part of a multiyear $11 billion restructuring.
The layoffs will be achieved through voluntary buyouts, the U.S. automaker said in an email sent to employees. The buyouts will be offered to employees who are eligible for retirement.
"We’re in a multiyear process of making Ford more fit and effective around the world," Ford's Americas President Kumar Galhotra said in the email. "We have reprioritized certain products and services and are adjusting our staffing to better align with our new work statement."
Ford has said it was targeting a 10% operating margin in North America. Last year, before the coronavirus pandemic hit operations, Ford's North American operating margin was 6.7%.
The Dearborn, Michigan-based company previously said it expects a full-year loss because of the pandemic's impact. 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 launches several new vehicles.
Last year, Ford cut 7,000 salaried jobs globally, as well as targeting 12,000 additional layoffs and plant closures in Europe. It also restructured operations in China and South America. Ford is changing chief executives on Oct. 1 to Jim Farley from Jim Hackett.
(Reporting by Ben Klayman; Editing by Chizu Nomiyama and Grant McCool)