New Ford cuts jolt workers

Report that up to 12% of carmaker’s salaried staff may be involuntarily laid off follows bonus payouts.

Bryce G. Hoffman and Louis Aguilar / The Detroit News

News that Ford Motor Co. is planning to lay off as much as 12 percent of its U.S. salaried work force by the end of July came as a blow to employees at the automaker’s world headquarters.

In discussions with more than a dozen Ford salaried workers Wednesday, a picture emerged of a work force on the edge and hungry for more information.

One 14-year Ford veteran said she had three phone conversations about the layoffs before arriving at work Wednesday.

"I get to work and a co-worker kind of whispers to me, ‘You’ll tell me anything as soon as you know anything, right?’ " said the woman who, like the others, asked that her name not be used because she feared losing her job.

"People are texting like mad," said another woman, who has worked at Ford for seven years, as she emerged from a Michigan Avenue restaurant wearing a Ford ID.

As The Detroit News first reported Wednesday, a human resources executive in Ford’s sales, marketing and service division said the cuts will be involuntary and are expected to affect about 10 percent — but potentially as much as 12 percent — of the company’s salaried work force.

Ford would not confirm the figure, saying only that details are still being finalized. Ford says it will release those details in July and hopes to complete this round of downsizing by August.

But other Ford managers told The News that they have been instructed to plan for cuts in the same range. That could put more than 2,000 white-collar workers at risk of losing their jobs this summer.

Several workers said they want to know how Ford will decide who goes and who stays. They also want to know if the automaker will provide any financial assistance to those employees it lets go.

Spokesman Mark Truby said the company offers a financial package for involuntary layoffs that provides severance pay based on years of service, as well as other benefits. He said these benefits will be extended to workers affected by this round of layoffs.

One salaried worker in Ford’s product development division said news that this round of cuts will be involuntary was hard to swallow, particularly in the wake of the big bonuses Ford paid out just a few weeks ago.

"A month ago, everybody was feeling pretty good. Now, there’s a lot of disappointment," he said. "They’re not treating us like the hourly people. It leaves a bad taste in your mouth."

Ford is planning more voluntary buyouts for blue-collar workers as it struggles to match its U.S. factory output with shifting consumer demand.

"We hit the wall, I guess," said one 15-year veteran. "What makes it so scary is that it’s not like there’s a whole lot of places to go look for new work."

Analysts say the cuts are necessary to ensure Ford retains sufficient liquidity to fund its ongoing restructuring effort.

Analyst Nathan Spunt of Fitch Ratings said the cuts are bound to be painful for workers and their families, but said he is encouraged to see the company taking steps to respond to what he called "a difficult economic environment."

"It’s very quick," he said. "It shows they’re doing what they can to preserve liquidity."

Even some of the workers who could be affected by the downsizing are encouraged by the steps Ford is taking to keep its turnaround from stalling.

"We’ve had enough good news to be optimistic," said Michael Kelly, who works in product development, pointing to Ford’s surprise $100 million first-quarter profit and new vehicles launching later this year. "But it makes you think, ‘Gee, I’ve got to work even harder. I don’t want to be one of those 12 percent.’ "