Ford offering 2,500 employees buyouts

Ford announced 2,500 employee buyouts from three plants in a cost-cutting move.

NEW YORK (CNNMoney.com) -- Ford Motor Co. announced Monday that it will lay off 2,500 autoworkers who do not accept retirement and buyout packages by the late summer in a cost-cutting move.

The automaker said it will focus its buyouts on three locations - Chicago, Louisville, and Cleveland. It said the buyouts and layoffs are consistent with the company's plan to reduce production capacity to meet customer demand and return its North American operations back to profitability by 2009.

"We remain focused on our plan to return the North American automotive business to profitability," Mark Fields, Ford's president of The Americas, said in a statement. "These actions are necessary as we align our capacity and product mix to meet real customer demand."

GM (GM, Fortune 500), Chrysler LLC and Ford (F, Fortune 500) have all announced buyout and early retirement packages for their UAW hourly workers. GM said in mid-February that as many as 20,000 employees, or 25% of its hourly workforce, could accept buyouts.

The three plants will begin to operate with one shift, starting in the summer. The company said the move will not affect production volume, but it will promote efficiency during "down weeks."

"By adjusting our operating patterns in this way, we can produce the right volume and avoid down weeks," said Joe Hinrichs, group vice president, Global Manufacturing.

Ford is currently offering the buyout packages to its entire U.S. hourly workforce. Workers may select from one of ten retirement packages, including an enhanced retirement offer to eligible workers.