Ford Motor has said it will lay-off roughly 7,000 of its employees, including managers, from around the world.
The job cuts involve the company’s white-collar employees and targets reducing Ford Motors’ overall global workforce by 10%. The plans to reduce its workforce, according to the world’s second-largest automaker, are part of its restructuring efforts that should see it save about $600 million every year.
The announcement was part of an email Ford CEO Jim Hackett sent to employees on Monday and stated that the 7,000 job cuts are expected to be completed by August this year. The automaker said that the current layoffs don’t apply to its hourly factory workers.
A majority of the lay-offs are overseas, but the United States will see roughly 2,300 employees leave Ford Motors. According to one company spokesman, about 1,500 of the 2,300 job cuts in the U.S. were voluntary buyouts that happened in 2018.
The company’s security filing shows that Ford had about 199,000 employees globally last year, 3,000 less than its global total in 2017.
Ford also intends to eliminate approximately 20% of jobs currently held by upper-level managers as it moves to seeks to reduce bureaucracy.
According to Hackett, reductions constitute voluntary buyouts as well as involuntary layoffs, and 900 of the intended 7,000 terminations will be completed by the end of this week.
He added that about 500 of those to be laid-off this week will impact employees in the U.S., meaning that the other 300 job cuts in the United States will be finalized in the next three months. Notifications for the employees being laid-off this week will begin on May 21 and run to May 24.
Ford Motors has said that the restructuring process in North America is nearing conclusion and that it hopes to continue these efforts other markets with Europe, China, and South America to follow. The Michigan-based company then plans to be done with the reorganizational processes by the end of August. Before Ford began its streamlining, it operated under 14 organizational layers. However, with the redesigning plans in place, that is set to reduce to 9 by December.