Around 10% of the company's salaried headcount will be cut as part of the automaker's 'Smart Redesign'.
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UPDATE, 21/5/19: Ford Australia has told CarAdvice this latest move should have a minimal impact on its local operations, see the statement at the bottom of the article.


In an email to employees, Jim Hackett, CEO of Ford, outlined his plan to eliminate "7000 salaried positions or about 10% of our global salaried workforce".

It should be noted this number includes "both voluntary and involuntary separations over the past year".

Citing a fast-changing industry, Hackett says the changes will "reduce bureaucracy, empower managers, speed decision making, focus on the most valuable work, and cut costs".

According to the email, the company's "Smart Redesign" will see Ford flatten its organisation structure. The current pyramid is around 14 layers deep, but once the reorganisation is complete it will be, at most, nine layers in depth.

This will see 80% of all managers have six or more direct reports, up from the present 35%. The CEO claims the changes will reduce "management bureaucracy by one third".

Teams and divisions are also being reorganised to be more efficient and responsive.

Once fully implemented the changes are estimated to save the company US$600 million ($869 million) per year. Money saved will help to fund increased investment in "in-vehicle infotainment, software, electrification, and other areas".

Most US employees set to be retrenched will be informed by the end of this week, while those affected in other regions will be informed by the end of August.

Hackett also noted: "Ford is a family company and saying goodbye to colleagues is difficult and emotional".

"We have moved away from past practices in some regions where team members who were separated had to leave immediately with their belongings, instead giving people the choice to stay for a few days to wrap up and say goodbye."

Earlier this year, Ford Australia cut 40 salaried employees from its workforce, along with 90 contractors and 75 hourly employees.

Ford still employs around 2000 Australians across in its head office and engineering division.

Dimity Mannering, corporate and employee communications manager for Ford Australia, has told CarAdvice: "The redesign of our salaried workforce is a global exercise. The majority of separations in Australia were announced back in January."