Ford Motor Co. (NYSE: F) has announced that it will cut about 7,000 jobs by the end of August as part of its larger restructuring. This amounts to about 10% of its total workforce.
CEO Jim Hackett said in an email to employees on Monday that the cuts would include both voluntary buyouts and layoffs. A spokesperson added that it freezes open positions as well. Roughly 2,300 of the affected people are employed in the United States.
These cuts aim to eliminate close to 20% of upper-level managers in an effort to reduce bureaucracy and speed decision making.
Notification to North American affected employees will begin on Tuesday, and the majority will be completed by May 24.
So far, in the United States, approximately 1,500 white-collar employees have left the company voluntarily since the restructuring began last year, some taking buyouts. Also about 300 have been laid off already, with another 500 layoffs starting this week.
In the email, Hackett 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.
Shares of Ford were last seen trading at $10.25, in a 52-week range of $7.41 to $12.15. The consensus price target is $10.36.