Ford plans to cut 1,400 employees in USA

Ford Motor Co. said Wednesday that it plans to cut 1,400 employees in the United States by the end of 2020.

In the first half of 2020, the company posted revenue of $ 53.691 million, a year-on-year decline of 32.2 percent.

The move comes as the impact of Covid-19 has created significant volatility in the global economy and caused a reduction in economic activity.

In the second quarter of 2020 there was a gradual restart of the manufacturing plants, supply network and other functions dependent on Ford Motor.

In important regions, the company has returned to pre-Covid-19 production levels. For example, at the end of the second quarter, North America was operating at 96% of pre-Covid-19 production levels.

The layoffs will be accomplished through offers to employees who are eligible for retirement and as part of an ongoing, multi-year $ 11 billion restructuring.

Ford Motor

«We are in a multi-year process to make Ford fitter and more efficient around the world,» Ford President of the Americas Kumar Galhotra said in an email to company employees.

Globally, extraordinary steps have been taken by international, federal, state and local government and public health authorities to contain and combat the outbreak and spread of Covid-19 in different regions, including travel bans, quarantines, «stay home» orders and similar mandates for many people to substantially restrict daily activities and for many businesses with the goal of reducing or ceasing normal operations.

Although restrictions have been relaxed in many places, some areas that had previously relaxed restrictions have reverted to stricter limitations on daily activities.

Ford Motor cut 7,000 salaried employees worldwide in 2019, in addition to having a goal of 12,000 additional layoffs and plant closures in Europe.