Ford Offers ‘Retirement Incentives’ to Employees Around the World
Executive and other white-collar positions are being offered buyouts as part of Ford’s profit-chasing strategy.
The Ford Motor Company has started offering buyouts to more than 15,000 salaried employees in North America and Asia. The plan is to reduce the global workforce by 1,400 employees in order to raise profits and please shareholders. Ranging from three to 18-months-pay, workers are being offered buyout packages modeled around their position, tenure with the company, and other contractual obligations according a Ford spokesman.
All employees who choose to accept the buyout offer will leave the company by September 30 of this year. With the deadline being a few months away, workers still have some time to go over the details and come to a conclusion. The cost of the buyouts will be reported as part of Ford’s third-quarter earnings.
Last month, the Blue Oval announced that there’s enormous pressure from shareholders to increase share price, thus the plans to decrease workforce in North America and Asia. The majority of the employees affected won’t impact production, assembly line, or other labor-intensive positions. This happens a few weeks after the American manufacturer replaced CEO Mark Fields, with former Steelcase CEO and Ford board member Jim Hackett.
Chime in with your thoughts on the forum. >>
Story via: [Freep]