Friday, August 19, 2005

Ford cuts white collars

Ford Motor Co., for the first time in generations, has resorted to firing employees and immediately escorting them from corporate buildings -- roiling the company and compelling Chief Executive Officer Bill Ford to send a message this week to reassure the so-called Ford Family.

Until now, Detroit automakers have cut thousands of white-collar jobs almost exclusively by getting employees to voluntarily quit through early retirement, buyouts or letting open positions go unfilled.

But not nearly enough people have come off Ford's payroll to meet its initial goal of cutting 2,750 of its 35,000 North American white-collar workers.

[...]

Ford has cut its staff by tens of thousands over the last decade, but it is still bleeding money. Last month, the automaker fired 20 to 25 public relations staff members, including some who had worked for the automaker for decades, people familiar with the matter said.

[...]

Even worse for workers, the company reported a $907-million loss in the April-June period this year for its North American division, and says now that cuts may have to go even deeper than 2,750 positions.

[...]

"Some have asked me why we have had to ask employees to depart immediately," he wrote. "Well, the management team has discussed this and concluded that it's kinder to make our separations in this fashion, rather than have the employee remain in a difficult situation."

  Detroit Free Press article

Oh, much kinder.

....but hey, do what you want....you will anyway.

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