Ford announces more job cuts as company 'redesign' continues

Company cutting 500 jobs in U.S.

DEARBORN, Mich. – Ford has announced additional job cuts as it continues to restructure for the future.

Ford announced Monday that they would be laying off about 500 white collar employees in the U.S., mostly in Dearborn, with more cuts globally.

In a statement, Ford said the layoffs are part of their "organizational redesign," adding the plan is near completion in relation to job cuts. The company said they would be adding employees in other areas, like mobility. 

"As we have said, Ford is undergoing an organizational redesign process helping us create a more dynamic, agile and empowered workforce, while becoming more fit as a business. The majority of the redesign is now complete for North America and will be concluding in other regions by August. This work has resulted in some separations of salaried employees and the reassignment of others. By the end of the process in August, we expect to have eliminated about 7,000 salaried positions or about 10% of our global salaried workforce. Within that total, and consistent with our goal to reduce bureaucracy, we will have reduced management structure by close to 20% which will result in annual savings of about $600 million," Ford said in a statement.

Related: Ford to cut 5,000 jobs in Germany, more in U.K. in effort to reduce costs in Europe

"We understand this is a challenging time for our team, but these steps are necessary to position Ford for success today and yet preparing to thrive in the future."

In March, Ford announced that it will invest $900 million in Southeast Michigan. Much of that money will go toward expanding Flat Rock Assembly Plant, where the company plans to add 900 jobs.

Ford said $850 million will be used to add space and reconfigure the plant, which will be used to build electric vehicles. The next generation Mustang will also be built at the plant by 2023.

Ford CEO Jim Hackett sent an email to employees Monday morning - read it below:

About the Authors:

Rod Meloni is an Emmy Award-winning Business Editor on Local 4 News and a Certified Financial Planner™ Professional.

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