AM I NEXT? IS THE HANDWRITING ON THE WALL AT FORD? (UPDATED)

Am I Next? Is the handwriting on the wall. Ford Restructuring and layoffs.

UPDATE: MAY 22, 2019 — ADDITIONAL LAYOFFS.

Ford has confirmed that 500 salaried domestic white-collar workers were notified they would be laid off, and more will be notified into the next month, for a total of 800 in North America.

In rather cute language, a Ford spokesperson noted, “ "We're not able to dimension the specific locations of where the salaried separations are taking place. We are just providing context that in total we expect about 800 separations in North America for all of our redesign process which will wrap up by the end of June [2019]. Most of the 500 laid off this week are concentrated at Ford World Headquarters in Dearborn, Michigan, so the number of people affected in Louisville, Kentucky would be a limited number.’

UPDATE: MARCH 14, 2019 FORD ANNOUNCES U.S. JOB CUTS ARE HERE. REFUSES MORE DETAIL AT THIS TIME.

“Ford Motor Co confirmed on Wednesday it is cutting an unspecified number of U.S. salaried jobs as part of a global reorganization announced last year.”

“Said Deep, a spokesman for the second largest U.S. automaker, declined to say how many jobs are being slashed but said the company expects the process to be completed by the end of June. He said the restructuring ‘has resulted in some separations of salaried employees and the reassignment of others.’”

“Ford said last year it was working to reorganize its global salaried workforce that will ‘result in headcount reduction over time, and this will vary based on team and location.’” <Source>

Original Post…

Many Wall Street analysts, including Morgan Stanley’s automobile sector Adam Jonas, have noted that Ford plans to release details of an upcoming restructuring effort in 2019.

According to a Ford spokesperson, "As we have said, we are undertaking restructuring activities that could result in potential EBIT charges of $11 billion, with cash-related effects of $7 billion, over the next five years," Ford spokeswoman Karen Hampton said in a statement. "These actions will come largely outside of North America. This includes the targeted and thoughtful approach we are taking to the redesign of our global salaried workforce. All of this work is ongoing and publishing a job-reduction figure at this point would be pure speculation." The message was reinforced by Ford CEO Jim Hackett who has publicly commented on the company’s plans to cut $25.5 billion in operating expenses over the next several years. and spend $11 billion to restructure.

Speculation or not, some suggest that Ford’s reduction in force could be larger than General Motor’s announced reduction which could range between 8,000 and 14,000 employees worldwide. Bloomberg speculates the number could go up to 25,000 employees.

Jonas notes that Ford's $11 billion implies 20 plants and 50,000 employees would be cut. Ford, however, has given no indication of any planned closures or layoff numbers. We estimate a large portion of Ford’s restructuring actions will be focused on Ford Europe, a business we currently value at negative $7 billion. But we also expect a significant restructuring effort in North America, involving significant numbers of both salaried and hourly UAW and CAW workers."

Ford’s Statement on Business Transformation can be found here.

It is likely that personnel reductions may occur in small phased batches to avoid creating major headlines and employee anxiety as the restructuring plan is implemented.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you now wondering, Am I Next?