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Ford severance package details released as company aims to cut 1,400 US salaried jobs

Ford, General Motors post strong Sept. sales, Fiat Chrysler down
Posted at 4:33 PM, Sep 08, 2020
and last updated 2020-09-08 16:33:55-04

(WXYZ) — Ford Motor Company's Voluntary Incentive Program opened today, giving 1,400 U.S. workers 45 days to decide whether they'll accepted early retirement. If offers aren't accepted, the company says involuntary separations may be required.

RELATED: Ford cutting 1,400 US salaried jobs with retirement offers

The company announced on Sept. 2 plans to cut its U.S. white-collar workforce by roughly 1,400 more positions. The automotive company hopes to achieve the cuts voluntarily by offering workers retirement incentives.

"The program is part of Ford’s multiyear process to increase global fitness and effectiveness, including reprioritizing products and services so we are more streamlined and successful," a statement from a Ford spokesperson read. "This is consistent with fixing parts of the business that aren’t working, accelerating in other areas and growing through investments in new technologies/businesses, and we need to make significant progress to return to a 10-percent EBIT margin in North America."

The offers will go to U.S. salaried workers who are eligible to retire as of Dec. 31, according to an AP report.