Reports suggest that Ford’s $11 billion structural revamp under CEO Jim Hackett might cost the jobs of close to 70,000 of its salaried employees.
On Thursday in an internal notice, the company informed its employees that it was reorganizing its salaried workforce and that further details regarding the transition including the jobs, that will be axed will be disclosed in the coming months.
“It’s really about redesigning the business,” Ford spokeswoman Karen Hampton told Automotive News. “An outcome of that is that there’s likely to be reductions. The real purpose is to change the way we work.” Additionally, Hampton also clarified that structural revamp would conclude by the second quarter of 2019.
Earlier this year, Hackett announced the revamp which was aimed to turn around the performance of its under-performing regions and also improve its profits in North America.
Apart from that, Ford, this year increased its upcoming five-year cost-cutting goal by $11.5 billion more than its original forecast at $25.5 million. At the time, Ford stated that nearly half of the cuts would be in the sales and marketing divisions through incentive optimization, reduced advertising and other actions. Other divisions that would be included in the revamp are engineering, product development, material costs, manufacturing and information technology.
“We’re addressing some long-term issues, and we’re going to do those in very thoughtful and orderly ways — not chaotic ways,” Hackett said in an interview with Automotive News last month. “We’re not in a crisis. The company’s in great shape.”