FORD TO CUT 10% OF GLOBAL SALARIED WORKFORCE

DETROIT: Ford Motor Co. said on Monday it will eliminate about 10% of its global salaried workforce, cutting about 7,000 jobs by the end of August as part of its larger restructuring in a move that will save the No. 2 automaker $600 million annually.

Ford chief executive officer Jim Hackett said in an email to employees that the cuts include both voluntary buyouts and layoffs, and a spokesman added it freezes open positions as well. About 2,300 of the affected people are employed in the US, the spokesman said.

“To succeed in our competitive industry, and position Ford to win in a fast-changing future, we must reduce bureaucracy, empower managers, speed decision making, focus on the most valuable work and cut costs,” Hackett said in the email.

Ford has been restructuring its operations globally to improve profitability and speed product development, making or announcing cuts in Europe, South America and Russia.

The automaker also has signed a deal with Germany’s Volkswagen AG to join forces on commercial vans and pickup trucks. The companies are also negotiating a broader alliance for electric and self-driving vehicle development.

US President Donald Trump has pushed boosting auto sector employment, harshly criticizing automakers, especially General Motors Co. for cutting jobs, but has focused primarily on bluecollar cuts at factories rather than white-collar reductions.

The White House did not immediately comment on Monday about Ford’s salaried cuts.

Within the cuts, Hackett said it will eliminate close to 20% of upper-level managers.