Ford Begins Buyout Offers to Mid-Managers

Ford Motor Co., which is looking to shed 2,000 salaried workers from its worldwide auto operations by year-end, Monday began offering early-retirement packages to managers in an effort to cut costs and bring in employees with new skills.

The early-retirement incentives being offered to 4,000 workers are Ford’s first in five years for administrative and middle managers. In the last two years, Ford has targeted well-paid senior managers and executives with such packages.

“What you’re seeing is an adjustment of their skills base and the age of their executives,” said David Andrea, an analyst with Rooney & Co.

Earlier this month, Chrysler Corp. started offering early-retirement packages to 1,200 of its 20,400 salaried staff in the U.S. and Canada. The company, which declined to estimate how many people it expects will accept the buyout, told analysts Friday that it will take a third-quarter charge of about $100 million, or 15 cents a share, for costs of the program.

General Motors Corp. also is offering voluntary separation plans to a “small number” of people.

Ford may offer similar retirement incentives to people in other countries, spokeswoman Pam Kueber said. She said Ford hopes to cut its salaried work force to 78,000 from about 80,000 currently, making this the last year that Ford has to offer enhanced retirement programs.

Last year, about 750 people worldwide took Ford up on its offer.

Ford said most of the early retirees will be in the U.S., home to two-thirds of its salaried staff. The company is expected to hire several hundred new employees for lower salaries and with new skills.