The car giant released a memo to employees today, revealing thousands of white-collar jobs will go by August. The company wants to save around £471million ($600million) per year by eliminating bureaucracy and increasing the number of workers reporting to each manager. In the US, around 2,300 jobs will go. It is understood 1,500 people have already been dismissed, while 500 more workers will be let go this week.
In a memo to employees on Monday chief executive Jim Hackett said the fourth wave of the restructuring will start on Tuesday.
The majority of cuts will be finished by May 24.
Mr Hackett said: “As we enter the final weeks of Smart Redesign in North America, I want to update you on our overall progress.
“But first, I want to thank you for your focus and dedication…
“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.
“This required intensive work across multiple layers of our company.”
He continued: “The time and effort from so many of our team members is helping to make us a stronger company, well positioned for the future.”
In the US about 1,500 white-collar employees left the company voluntarily since the restructuring began last year, some taking buy-outs.
Most of Ford’s white-collar workers are in and around the company’s Dearborn, Michigan, headquarters.
Last month, Ford unveiled better-than-expected earnings for the first quarter of this year.
For the period of January to March 2019, the car maker posted a quarterly net profit of $1.15 billion or 29 cents per share.
Ford earned 44 cents per share, excluding one-time items, which was above analyst expectations of 27 cents, according to Refinitiv.
Outgoing Ford CFO Bob Shanks told CNBC at the time: “We have a lot of work to do. A lot of redesign of the business.
“We’re still somewhat concerned about the external environment.”