Ford cuts 7,000 white-collar jobs worldwide

DETROIT — Ford revealed details of its long-awaited restructuring plan Monday as it prepared for a future of electric and autonomous vehicles by parting ways with 7,000 white-collar workers worldwide, about 10% of its global salaried workforce.

The major revamp, underway since last year, will save about $600 million per year by eliminating bureaucracy and increasing the number of workers reporting to each manager.

In the U.S., about 2,300 jobs will be cut through buyouts and layoffs. About 1,500 have left voluntarily or with buyouts, while 300 more already have been laid off. About 500 will be let go starting this week, largely in and around the company’s headquarters in Dearborn, Michigan.

The layoffs are coming across a broad swath of the company, including engineering, product development, marketing, information technology, logistics and finance. But the company said it is hiring in some critical areas, including those developing software and dealing with self-driving and electric vehicles.

In a memo to employees on Monday, CEO Jim Hackett said the fourth wave of the restructuring will start Tuesday, with the majority of U.S. cuts being finished by Friday.

“To succeed in our competitive industry, and position Ford to win in a fast-charging future, we must reduce bureaucracy, empower managers, speed decision making and focus on the most valuable work, and cost cuts,” Hackett wrote.

Factory workers have not been affected by the restructuring thus far, as the company has retooled car plants so they can build more popular trucks and SUVs.

In November, General Motors announced it would shed up to 14,000 workers as it cut expenses to prepare for a shift to electric and autonomous vehicles.