Ford is cutting 7,000 white-collar jobs
Ukraine reports 5,276 new COVID-19 cases Zelensky: Every third Ukrainian considers road construction one of greatest achievements of 2021 Ukraine ready to implement Minsk agreements, but Russia's desire needed - Yermak Michel: EU unanimously agree to roll over economic sanctions against Russia Actions by Ukraine's partners will help prevent worst-case scenario - Zelensky COVID-19 in Ukraine: Health officials confirm 8,899 daily cases as of Dec 17 Macron tells Zelensky he declared support for Ukraine in call with Putin Zelensky, Scholz discuss gas transit through Ukraine after 2024 Ukraine ready for any format of talks with Russia - Zelensky Ukraine’s only journalist in Russia facing extremism charges - lawyer PM Shmyhal: First two applications for investment projects worth $96 million filed Zelensky, PM of Italy discuss security situation around Ukraine President signs off State Budget 2022 London considering all options for responding to Russia's aggression against Ukraine Putin, Biden to hold another round of talks Some 260,000 Ukrainians “victims of human trafficking” over 30 years - prosecutor general Ukraine plans to create center to protect energy infrastructure from cyber attacks No clear idea so far when Normandy Four top diplomats set to meet - German Ambassador Ukraine receives EUR 600M in macro-financial assistance from EU Zelensky holds phone conversation with PM of Israel Ukraine sets new daily COVID vaccination record MFA: European Union has not yet removed Ukraine from list of safe countries Kyiv records 1,023 new COVID-19 cases, 29 deaths G7 ambassadors welcome adoption of law on NABU status Ukraine can increase Covid vaccination rates to 1.5M a week – Liashko

Ford is cutting about 7,000 white-collar jobs, which would make up 10% of its global workforce.

The company has said it was undertaking a major restructuring, and on Monday said that it will have trimmed thousands of jobs by August.

The company said that the plan will save about $600 million per year by eliminating bureaucracy and increasing the number of workers reporting to each manager.

In the U.S. about 2,300 jobs will be cut through buyouts and layoffs. About 1,500 already have happened. About 500 workers will be let go this week.

In a memo to employees, Monday, CEO Jim Hackett said the fourth wave of the restructuring will start on Tuesday, with the majority of cuts being finished by May 24.

“To succeed in our competitive industry, and position Ford to win in a fast-charging future, we must reduce bureaucracy, empower managers, speed decision making and focus on the most valuable work, and cost cuts,” Hackett’s wrote.

In the U.S. about 1,500 white-collar employees left the company voluntarily since the restructuring began last year, some taking buyouts. About 300 have been laid off already, with another 500 layoffs starting this week.

Most of Ford’s white-collar workers are in and around the company’s Dearborn, Michigan, headquarters.

It’s the second set of layoffs for Detroit-area automakers, even though the companies are making healthy profits. Sales in the U.S., where the automakers get most of their revenue, have fallen slightly but still are strong.

In November, General Motors announced it would shed up to 14,000 workers as it cut expenses to prepare for a shift to electric and autonomous vehicles. The layoffs included closure of five factories in the U.S. and Canada and cuts of another 8,000 white-collar workers worldwide. About 5,000 blue-collar positions were cut, but most of laid-off factory workers in the U.S. will be placed at other plants mainly that build trucks and SUVs.

Both companies have said the cuts are needed to prepare for the future, because the companies face huge capital expenditures to update their current vehicles and develop them for the future.

The cuts brought withering criticism of GM from President Donald Trump and Congress, especially the closing of a small-car factory in Lordstown, Ohio. Trump campaigned on bringing factory jobs back to the industrial Midwest. GM has since announced a possible deal to sell the Lordstown plant to a startup electric vehicle maker, but it hasn’t been finalized.

Hackett said in the memo that Ford is departing from past practices and letting laid-off employees stay a few days to wrap up their jobs and say good-bye to colleagues. In the past, laid-off workers would have had to pack up and leave immediately.

“Ford is a family company and saying goodbye to colleagues is difficult and emotional,” Hackett wrote.

Shares of Ford Motor Co. slipped early Monday.