Ford Motor to trim US workforce by 1,400; offer early retirement incentives

Most of the reductions would take place in the area of Dearborn, Michigan, where Ford has its headquarters and large product development and engineering operations

Ford Motor
The offers will go to U.S. salaried workers who are eligible to retire as of December 31.
AP | PTI Dearborn
1 min read Last Updated : Sep 02 2020 | 9:30 PM IST

Ford Motor Co. will offer early retirement incentives with hopes of cutting its US white-collar workforce by 1,400 more positions.

Kumar Galhotra, the company's president of the Americas, told employees about the offers Wednesday morning. The company says they're part of an $11 billion restructuring plan that started more than a year ago.

Most of the reductions would take place in the area of Dearborn, Michigan, where Ford has its headquarters and large product development and engineering operations. A spokesman says Ford expects to meet its goals with the offers. If it doesn't, then it may consider involuntary separations.

The offers will go to U.S. salaried workers who are eligible to retire as of December 31. Those approved to retire would leave the company by the end of the year.

The offers won't go out in every part of the business. For instance, information technology workers and those responsible for rolling out new vehicles will not be affected.

Ford has about 30,000 white-collar workers in the U.S.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Ford MotorUnited StatesRetirement schemesUS employment

Next Story