Posted on: Tuesday, November 6, 2001

Ford may cut 8,000 white-collar jobs

Associated Press

DETROIT — Ford Motor Co. is considering cutting about 20 percent of its U.S. white-collar work force as part of its restructuring plans, according to a published report.

The Dearborn-based automaker is considering shedding up to 8,000 employees, The Financial Times reported on its Web site yesterday.

Citing people familiar with the plans, the newspaper said Ford expects the move would save more than $1 billion.

Ford spokesman Jim Vella told The Associated Press yesterday that the company would announce a restructuring plan in January, and the automaker has so far made no decisions regarding job cuts.

"We would consider any other reductions very carefully before we made a final decision," Vella said.

Ford already announced in August that it would eliminate 4,000 to 5,000 white-collar positions by the end of the year. The automaker said it hoped to achieve that goal through the offer of buyout and early retirement packages.

Ford also said in August that a more sweeping restructuring plan would be announced toward the end of 2000. That was delayed after Jacques Nasser was ousted as chief executive last week and replaced by chairman William Clay Ford Jr.

The proposed job cuts were being considered before Nasser left, The Financial Times reported.