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Ford Motor Co. cuts contract workers effective immediately, ends buyout period for salaried employees

Ford Motor Co. cuts contract workers effective immediately, ends buyout period for salaried employees

DIGITAL MARKETING NEWS

Ford Motor Co. cuts contract workers effective immediately, ends buyout period for salaried employees

Phoebe Wall Howard

| Detroit Free Press
A few questions with Kumar GalhotraKumar Galhotra, president of Ford North America answers a few questions at Ford World Headquarters in Dearborn, MI on Thursday, Dec. 13, 2018.Ford Motor Co. ended the first week of December confirming publicly that delivery of its 2021 Ford Bronco would be delayed, and then informing contract employees their commitments would be terminated.Contract workers were notified by their agency employers late Friday that “their assignment at Ford has ended,” Ford spokesman Ian Thibodeau confirmed to the Free Press, part of the USA TODAY Network.Cuts were effective immediately upon notice, Thibodeau said.”This adjustment is part of our continued effort to refine the work we need to do and the people required to do it,” he said.Thibodeau declined to say how many people had been let go and which departments had been affected. Ford Bronco 2021: Deliveries delayed until summer because of COVID-19 supply chain disruptionsKia recall: Kia recalling nearly 295,000 vehicles due to engine fire risk, including select Sorento, Soul SUVsFord has long- and short-term employees working on contract in areas including engineering product development, purchasing and information technology.Engineers, for example, may work years on product launches at Ford though technically employed by an outside agency. Contract employees are rarely given severance or health care; their pay ends immediately.Ford ends buyout for salaried workersAlso Friday, U.S. salaried employees learned that the buyout opportunity announced in September had closed and no additional cuts would occur in 2020.The number of Ford employees retiring as part of the Voluntary Incentive Program fell “within the range” of a goal stated previously, Thibodeau said. “There will be no further salaried retirements or separations associated with the program.”He declined to say whether cuts would be made in early 2021, as sometimes occurs after contract workers are eliminated at companies.”We will continue to adjust our resources as we align with the priorities … in the plan” outlined by CEO Jim Farley, Thibodeau said. “We’ll inform our employees directly of any measures in the future, though there is nothing to share at this time.”On Sept. 8, Ford emailed employees the details of a severance package with a goal of shedding at least 1,400 U.S. jobs by the end of 2020. The last day of employment would be Dec. 31.Targeted employees had 30 years of service, were age 55 and older with 10 years of service or age 65 with five years of serviceKumar Galhotra, president, Americas & International Markets Group, who oversees the profit and loss of the business units, told workers the news and followed up with an email that said: “We’re in a multiyear process of making Ford more fit and effective around the world. We have reprioritized certain products and services and are adjusting our staffing to better align with our new work statement.”Contact Phoebe Wall Howard at 313-222-6512 or phoward@freepress.com. Follow her on Twitter @phoebesaid. Read more on Ford and sign up for our autos newsletter.


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