Ford plans to cut 1,000 jobs in North America as part of an $11 billion global restructuring plan that was launched two years ago, Bloomberg News reported.
The American automaker’s restructuring plan is not related to the economic downturn caused by the coronavirus pandemic, people familiar with the decision told Bloomberg News. The job cuts could be announced as early as this week.
Ford’s reorganization efforts come as the company attempts to reach what CEO Jim Hackett calls financial “fitness.” Last year, the U.S. company closed plants and cut thousands of jobs in Europe.
The North American cuts are expected to be smaller and come in the form of voluntary buyouts, Bloomberg News reported. The new cuts are expected to be in addition to 2,300 previously announced salaried job reductions in the U.S. during Hackett’s tenure.
Ford removed 7,000 salaried positions around the world in 2019 as it began its global restructuring and expected to save $600 million per year. At the end of last year, Ford employed 190,000 people.
These job cuts come as the current CEO is planning to retire. Incoming CEO Jim Farley will take over Oct. 1. The plans were first reported by StreetInsider.com.
Ford told The Hill in a statement it is “always looking at ways to make our business more effective,” adding “there is nothing to announce at this time.”
The job cuts come as the pandemic continues to take a hit on most industries.
German automaker BMW is preparing for job cuts to its U.S. salaried workforce “to align with current market conditions,” a spokesperson told Bloomberg News.