Ford to layoff 7,000 white-collar workers

American automaker company Ford will be laying off 7,000 white-collar workers as part of their austerity measures which will help the company save around 600 million US dollars a year.

The latest cut will affect 10 per cent of Ford's salaried staff worldwide. Around 2,400 jobs cuts are in North America and 1,500 positions will be eliminated through voluntary buyout offer, according to CNN.

The workers will start receiving the pink slips from Tuesday and all terminations will be completed by August-end, as per a letter issued by CEO Jim Hackett on Monday.

The company has been making eliminations as part of a massive restructuring of its business. As per the plan, they are set to shut down three plants in Russia and one factory each in Europe and Brazil.

Even though Ford is doing fairly well on the domestic front, it has struggled overseas. It reported losses in South America, Asia, and Europe, despite doing well in North America.

The automaker's job-cuts are similar to what its rival, General Motors (GM), has been doing. GM, in an announcement last November, cut off around 8,000 jobs, which is equivalent to 15 per cent of its salaried and contract workers. Apart from this, GM also shut down five North American factories.