In a newsconference from Dearborn Michigan, CEO Bill Ford said, "These cuts area painful last resort and I am deeply mindful of
their impact. They aregoing to affect many lives, many families and many communities, and wewill do everything we reasonably can to ease the burdens."
Thesecond largest U.S. automaker also announced it is cutting white collarjobs. Ford is reducing its salaried workforce by ten percent and statesthat twelve percent of its executives will also be losing their jobs bythe end of the first quarter.
UAW President Ron Gettelfingerissued a statement saying it was a dark day, saying "The announcementhas further left a cloud hanging over the entire work force because ofpending future announcements of additional facilities to be closed atsome point in the future." He added, "Certainly, today's announcementwill only make the 2007 negotiations all the more difficult and all themore important."
Bill Ford said that the cuts were needed. "Bytaking the actions we are today, in the long run, we will create farmore stable and secure jobs. We all have to change, and we all have tosacrifice, but I believe this is the path to winning."
Most ofthe changes, however, won't be felt in the near future. Some of thecuts
are scheduled to come in effect six years from now. The UnitedAuto Workers Union has a contract with the carmaker requiring laid-offworkers to be paid nearly in full, thus forcing Ford to offer buyoutpackages.
As reported on CNN, Don Leclair, Ford's ChiefFinancial Officer, said about half the cuts would likely beaccomplished through normal retirement and attrition, while half willbe accomplished through "inducements."
Earlier Monday, Fordannounced a 2 billion dollar profit, which was down 42 percent from ayear earlier. Ford managed to fare better than some expected because ofthe success of its finance arm and the sale of its Hertz Corp. rentalcar unit. Its vehicle division, mind you, was not profitable.
Fordis considering closing two additional plants as well, but for the timebeing has not announced which ones may be getting the axe.
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| Mark Fields, Executive vice president Ford Motor Company and President of the Americas, and the ex-Mazda turnaround man most expect big things from, addresses employees, media and members of the investment community about the company's "Way Forward" plan for North America. (Photo: Ford Motor Company of Canada) |
Thesecond largest U.S. automaker also announced it is cutting white collarjobs. Ford is reducing its salaried workforce by ten percent and statesthat twelve percent of its executives will also be losing their jobs bythe end of the first quarter.
UAW President Ron Gettelfingerissued a statement saying it was a dark day, saying "The announcementhas further left a cloud hanging over the entire work force because ofpending future announcements of additional facilities to be closed atsome point in the future." He added, "Certainly, today's announcementwill only make the 2007 negotiations all the more difficult and all themore important."
Bill Ford said that the cuts were needed. "Bytaking the actions we are today, in the long run, we will create farmore stable and secure jobs. We all have to change, and we all have tosacrifice, but I believe this is the path to winning."
Most ofthe changes, however, won't be felt in the near future. Some of thecuts
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| Jim Padilla, President and Chief Operation Officer, Ford Motor Company, made his remarks during the announcement as well. (Photo: Ford Motor Company of Canada) |
As reported on CNN, Don Leclair, Ford's ChiefFinancial Officer, said about half the cuts would likely beaccomplished through normal retirement and attrition, while half willbe accomplished through "inducements."
Earlier Monday, Fordannounced a 2 billion dollar profit, which was down 42 percent from ayear earlier. Ford managed to fare better than some expected because ofthe success of its finance arm and the sale of its Hertz Corp. rentalcar unit. Its vehicle division, mind you, was not profitable.
Fordis considering closing two additional plants as well, but for the timebeing has not announced which ones may be getting the axe.