Ford offers voluntary buyout program for 1,000 U.S. employees
- Ford first notified employees of the buyout program last month, a company spokesperson told CNBC.
- "We are reshaping our workforce to match the critical skills and positions needed to transform our business," the spokesperson said in an email to CNBC.
Ford Motor is looking to buy out 1,000 salaried positions nationwide, using a variety of voluntary, seniority-based severance packages to incentivize employees to resign.
Ford first notified employees of the buyout program last month, a company spokesperson told CNBC.
"We are reshaping our workforce to match the critical skills and positions needed to transform our business," the spokesperson said in an email to CNBC. "Staffing adjustments, including hiring and separations, are part of a multiyear process to align talent with our cycle and service plan and to turn around our automotive operations."
Buyouts start at one month of severance and benefits for Ford employees for five years or less. The largest incentives apply to employees of over 20 years: in addition to six months of severance and benefits, they also receive reemployment assistance for the same amount of time.
"The voluntary separation program provides a lump-sum cash severance payment and certain benefits continuations for eligible employees who elect to, and are approved to, resign from the Company under the program," the spokesperson said.
In response to a semiconductor chip shortage, Ford slashed vehicle production across North America in June. The automaker idled or cut production at eight plants, temporarily laid off workers, and projected it would lose about 50% of its vehicle production in the second quarter.