AP NEWS
Related topics

Executive: Ford to Eliminate Jobs

August 17, 2001

DETROIT (AP) _ Ford Motor Co. says it will cut between 4,000 and 5,000 white collar jobs in North America, a Ford executive said Friday.

``We’ve become much more efficient and the jobs are not needed anymore,″ a high-ranking Ford executive told The Associated Press. ``It’s an incredibly competitive market and the economy has slowed.″

Ford was to make the announcement during a teleconference Friday. The cuts account for about 10 percent of the automaker’s salaried work force.

The source said he expects all the people who are leaving to leave in December. The automaker will be offering ``very good packages,″ to long-standing employees, the source said. Further details were unavailable.

The automaker was expected to take a charge of about $1 billion against its third-quarter earnings to cover the initial cost of the job cuts, The Detroit News reported.

Ford management also has reportedly begun reviewing the possible delay of some planned vehicle models, which would lower the company’s design and engineering costs, The New York Times reported.

Shares of Ford were up 92 cents, or more than 4 percent, to close at $23.47 in trading on the New York Stock Exchange on Thursday.

In January, DaimlerChrysler AG announced an aggressive restructuring program at its U.S.-based Chrysler division that would result in the loss of 26,000 jobs over the next three years, about 20 percent of the company’s North American work force.

___

On the Net:

http://www.ford.com

AP RADIO
Update hourly