Ford offers buyouts to 15,000 workers, including some in California
Ford Motor Co. plans to eliminate about 1,400 salaried positions by offering buyout packages to 15,000 employees in Asia and North America, including some in California.
The buyouts specifically affect corporate staff, including the finance, legal, communications, government affairs and purchasing departments. The Dearborn, Mich., automaker said it notified affected employees this week. Those who accept the buyout are to leave by Sept. 30.
Ford’s California corporate staffers are based in Irvine. A company spokeswoman said some California employees were offered a buyout, but would not say how many.
“We continually look at our external environment and our operating performance to optimize results,” Ford said in a statement. “We decided this is the right time to take this action as we work to be as lean as possible.”
The move comes as traditional automakers face stagnating sales and a rapidly changing future for their business.
Silicon Valley stalwarts such as Apple Inc. and Google’s parent company, Alphabet Inc., have been pioneering development of autonomous vehicles, and many forecasters have predicted that drivers will increasingly rely on vehicle-sharing and ride-hailing services rather than owning cars.
Last month, Ford ousted Chief Executive Mark Fields and replaced him with Jim Hackett, who had been running the company’s new unit focused on cutting-edge transportation.
Your guide to our new economic reality.
Get our free business newsletter for insights and tips for getting by.
You may occasionally receive promotional content from the Los Angeles Times.