atprm
05-28-2008, 07:04 AM
Ford To Cut More Jobs
POSTED: 8:04 am EDT May 28, 2008
UPDATED: 9:34 am EDT May 28, 2008
DEARBORN, Mich. -- Ford Motor Company has announced more job cuts.
Between 10 and 12 percent of U.S salaried work force will be cut in an effort to jump start the turn-around plan.
That is an estimate of over 2,000 workers.
This time around it will not be voluntary, said Vice President Jim Farley.
Farley told employees during a town hall type meeting on Friday that they are also evaluating the merit increases given to salaried employees in July.
There are 24,300 white-collar employees in the U.S, Canada and Mexico.
Ford CEO Alan Mulally had warned these cuts were coming last week.
Gas prices and changing consumer preferences have killed demand for trucks and SUVs, two high volume and high margin products," said analyst Shelly Lombard of Gimme Credit. "For Ford, the good news is that it's selling lots of its popular cars and crossovers and therefore will be increasing production of models like the Fusion and Lincoln MKX. But it's cutting production of trucks and SUVs so total production for the second quarter will be down 15 percent year-over-year; the third quarter will be down 15 percent to 20 percent, and the fourth quarter will be down 2 percent to 8 percent."
Ford has eliminated over 11,000 salaried employees since 2005.
POSTED: 8:04 am EDT May 28, 2008
UPDATED: 9:34 am EDT May 28, 2008
DEARBORN, Mich. -- Ford Motor Company has announced more job cuts.
Between 10 and 12 percent of U.S salaried work force will be cut in an effort to jump start the turn-around plan.
That is an estimate of over 2,000 workers.
This time around it will not be voluntary, said Vice President Jim Farley.
Farley told employees during a town hall type meeting on Friday that they are also evaluating the merit increases given to salaried employees in July.
There are 24,300 white-collar employees in the U.S, Canada and Mexico.
Ford CEO Alan Mulally had warned these cuts were coming last week.
Gas prices and changing consumer preferences have killed demand for trucks and SUVs, two high volume and high margin products," said analyst Shelly Lombard of Gimme Credit. "For Ford, the good news is that it's selling lots of its popular cars and crossovers and therefore will be increasing production of models like the Fusion and Lincoln MKX. But it's cutting production of trucks and SUVs so total production for the second quarter will be down 15 percent year-over-year; the third quarter will be down 15 percent to 20 percent, and the fourth quarter will be down 2 percent to 8 percent."
Ford has eliminated over 11,000 salaried employees since 2005.