Ford readies layoffs amid global restructuring plan
A few weeks after Ford Motor Company announced that steel and aluminum tariffs will cost it US$ 1 billion in profit, the Dearborn, Michigan-based automaker revealed that a global restructuring plan is in the works to revamp its managing operations.
However, the company made clear that the measure does not seek to mitigate losses due to tariffs, but is part of a previously planned restructuring effort to make the company’s operations more dynamic worldwide.
The plan would cost around US$ 25.5 billion and would affect only salaried employees, while those jobs directly related to manufacturing will remain intact.
The company hasn’t said how many jobs will be lost, but a report from Morgan Stanley estimates “a global headcount reduction of approximately 12%” or 24,000 of Ford’s 202,000 workers worldwide”. Layoffs are expected to begin early next year.
Currently, Ford employs 8,700 people in Mexico in four manufacturing operations and a corporate office. The company owns two assembly plants in Hermosillo, Sonora and Cuautitlan, State of Mexico; an engine manufacturing complex in Chihuahua consisting of three plants and a transmissions plant in Guanajuato.
The corporate building is located in the Santa Fe suburb of Mexico City, but there’s plans to shift those operations to a new facility in the municipality of Naucalpan, which is also in the State of Mexico.