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Ford reportedly eyes more job cuts
Reports: Consolidation could lead auto maker to slash up to 25% of its sales and marketing staff.
August 9, 2005: 7:20 AM EDT

NEW YORK (CNN/Money) - Ford Motor Co. is looking at cutting up to 25 percent of its sales and marketing staff, according to published reports.

The nation's No. 2 auto manufacturer will combine the now-separate marketing and field-sales staffs for its Ford and Lincoln-Mercury divisions, according to reports in The Wall Street Journal and the Detroit News on Tuesday.

The depth of the cuts was not disclosed by the company, according to the reports, but the News reports at least 15 percent -- or 525 -- of the 3,500 employees throughout Ford's marketing, sales and service staff will be affected, while the Journal reported that ultimately 20 to 25 percent of Ford's current sales and marketing staff could be affected.

The papers reported that as part of the streamlining, 34 U.S. field-sales offices for the two divisions will be reduced to 11, while six of the current 17 Ford U.S. customer-services offices also will be closed.

Ford spokeswoman Sara Tatchio told the News that customers will not notice the new streamlining effort. She said the exact depth of the staff reduction has yet to be finalized.

"Unfortunately, some involuntary layoffs will be needed," she confirmed to the Detroit newspaper.

In June, the Journal reported that Ford was eyeing cutting up to 30 percent of its salaried staff overall, or a reduction of 10,000 jobs, in the next few years, although Ford would not comment on the report at that time.

Ford Chief Financial Officer Don Leclair told investors that all cost-cutting options were on the table. Ford had previously confirmed plans to cut up to 2,700 salaried jobs in North America this year.

For more news on autos and auto manufacturers, click here (Research).  Top of page

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