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Ford Motor Will Cut 7,000 Jobs by August to Streamline Operations

By Neal E. Boudette
May 20, 2019

Ford Motor will lay off 800 employees in the United States over the next several weeks as part of a broader plan to shrink its salaried work force by 7,000 people, or 10 percent, by the end of August.

The cost-cutting drive arises from an effort by the company’s chief executive, Jim Hackett, to increase profits in the face of slowing sales. Ford reported last month that it earned $1.1 billion in the first quarter, down from the same period a year earlier but better than analysts had expected.

Ford started cutting jobs last year and expects to hit the 7,000 target sometime in August, Mr. Hackett told employees in an email on Monday.

“Within that total, and consistent with our goal to reduce bureaucracy, we will have reduced management structure by close to 20 percent,” he said. “This will result in annual savings of about $600 million.”

Mr. Hackett took over as chief executive two years ago as costs were rising and profits were falling. Analysts have criticized the deliberate pace of his turnaround, but investors have rewarded the company since its first-quarter earnings report. On Monday, Ford shares were trading at $10.26, up from $7.90 at the beginning of the year.


https://www.nytimes.com/2019/05/20/business/ford-cutting-jobs.html
 

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I was working as an Engineer at the Livonia Transmission plant in 2007 when Ford was cleaning house. I was 57 at the time with 15 years at Ford. Based on my age and years of service I was qualified to accept the buyout which was one years salary (rolled over into my 401k) plus collecting my pension with an additional bridge allowance until age 62. Although my pension is small with only 15 years of service, my wife and I didn't want to deal with the crappy weather in Michigan and we already had a house in Scottsdale to move to, so I gladly accepted the buyout. Ford got more people than expected with the buyouts, and even rejected some of them. Even my boss took the buyout. He had 35 years so he walked away with a sweet pension and went to work for Getrag. Have never regretted my decision, and if I want to see snow, it's only an hours drive north!
 

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I was working as an Engineer at the Livonia Transmission plant in 2007 when Ford was cleaning house. I was 57 at the time with 15 years at Ford. Based on my age and years of service I was qualified to accept the buyout which was one years salary (rolled over into my 401k) plus collecting my pension with an additional bridge allowance until age 62. Although my pension is small with only 15 years of service, my wife and I didn't want to deal with the crappy weather in Michigan and we already had a house in Scottsdale to move to, so I gladly accepted the buyout. Ford got more people than expected with the buyouts, and even rejected some of them. Even my boss took the buyout. He had 35 years so he walked away with a sweet pension and went to work for Getrag. Have never regretted my decision, and if I want to see snow, it's only an hours drive north!
I too should have a pretty good deal if Ford forces me out. I am almost mid 50's, so I still have a few good years left in the market, and engineering jobs should be easy to come by having Ford on my resume. Honestly, I know a guy who left GM and is driving 18 wheelers across the country now making $150K/year, after training for 6 months and earning $72K while doing so. He says he should be up to about $200K very soon. He is divorced, and it works great for him, and he loves to travel the open road. About my age, he says he will work till about 60. Says it beats his desk job, and beats staying home. And there is a serious shortage in drivers these days. Interesting.
 

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I too should have a pretty good deal if Ford forces me out. I am almost mid 50's, so I still have a few good years left in the market, and engineering jobs should be easy to come by having Ford on my resume. Honestly, I know a guy who left GM and is driving 18 wheelers across the country now making $150K/year, after training for 6 months and earning $72K while doing so. He says he should be up to about $200K very soon. He is divorced, and it works great for him, and he loves to travel the open road. About my age, he says he will work till about 60. Says it beats his desk job, and beats staying home. And there is a serious shortage in drivers these days. Interesting.
I hear similar stories, often. I recently changed industries (slightly) from auto parts to big truck stuff, and there's a lot of drivers in that basic age bracket (I'm right behind you) that are earning good money while seeing a lot of country. It's a very isolated job for some, but others have spouses that ride along and/or co-drive...and others love the privacy.

I admit to giving it a fair amount of thought, myself. I play in various music groups enough that it'd be very difficult to take on that sort of career, but I still consider it.
 

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I consider myself a social person, but I can easily go long periods without talking to people, or at least in person. These trucks are like small motels, complete with bed, cable TV, fridge, microwave, even X-Box. Does not sound so bad. I would not rule it out anyway. Money is decent, but seeing the country from coast to coast has been a long dream of mine.
 
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