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Ford Plans White-Collar Cuts
05:05 p.m. EDT, June 05, 2008

Over the next few months the Ford Motor Co. will cut white-collar work force expenses by 15 percent as a further adjustment to the protracted slump in auto sales, in particular SUVs and pickup trucks.

A spokeswoman for Ford, Marcey Evans, said, "We told employees today we are going to cut salaried workforce-related expenses by 15 percent and complete the actions by August 1. This does include reductions in headcount and contract jobs, attrition and consolidation of positions."

The potential for the cuts was first raised by Ford in May when it said it would not be able to reach its goal of profitability in 2009. The company has approximately 24,300 salaried workers in North America.

Those employees who will be let go will receive standard severance packaged although Ford did not disclose the details of those packages. Buyouts will be offered to union-represented workers at plants where declining demand for specific vehicles has created excess capacity. At the present time some 38,000 contract workers who are members of the United Auto Workers union have accepted buyouts from Ford.

Although the company has been restructuring for more than two years, high gasoline prices that have shifted consumer demand toward smaller, fuel efficient vehicles necessitated the latest cuts and an emphasis on products like the Fiesta subcompact due to debut in North America in 2010.

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