By Evan Henerson
Facing the same decline in U.S. auto sales that has forced General Motors and Fiat Chrysler to take similar measures, Ford is cutting 1,400 jobs to reduce costs. According to CNN, the company intends to achieve the staff reduction primarily through early retirement and other buyout packages.
While there is no such thing as a “bright side” to news of any company’s decision to eliminate 10% of its workforce, a notable paragraph in CNN’s report of the bloodletting highlighted the importance of union representation:
“The cuts do not include the hourly workers on the assembly lines at American factories, who have union protection. About 57,000 members of the United Auto Workers union work at the company.”
Ford has about 200,000 workers worldwide, and most of these 1,400 reductions will come from North America and the Asia Pacific regions.
In addition to facing market difficulties, Ford has incurred the wrath of the jobs creation-minded President Trump who – during the campaign - criticized the company for investing in Mexico and then praised Ford when it decided to invest $700 million in a Michigan plant which will build electric and self-driving cars.
In a separate article, CNN reports that Ford expects to cut $3 billion in costs in order to have the money to invest in new technologies. GM has laid off 4,400 factory workers and Fiat Chrysler has laid off 1,300.
Read more here.