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January 28, 2023

Layoff Watch ’19: Accountants Said to Be Among Casualties In Ford Bloodbath

There was some big news coming out of Dearborn, MI, yesterday, as Ford Motor Co. said by August it will have given 7,000 white-collar workers pink slips worldwide, a 10% reduction in its global salaried workforce, as part of a restructuring plan to reduce bureaucracy and increase revenue. And accountants are reportedly among those losing their jobs.

The biggest job cuts will be felt among the higher ranks of the automaking giant. Ford CEO Jim Hackett said in an email to employees on Monday that “we will have reduced management structure by close to 20%.”

While accountants were not mentioned specifically in the numerous reports about the layoffs that were published yesterday (although layoffs in finance was mentioned by the Associated Press), a May 13 report in the Detroit Free Press confirming the pending job cuts did hint that accountants would be among the casualties:

Salaried workers in accounting, administrative support and other areas at Ford World Headquarters in Dearborn are reportedly being let go, sources close to the situation confirmed to the Free Press. In addition, the information technology team in China has reportedly seen reductions.

 

It is not known how many Ford accountants were given pink slips. The Detroit News reported this morning that the first of 500 Ford salaried employees are expected to be notified in meetings today that they’re being let go.

Ford said in the U.S. about 2,300 jobs will be cut through buyouts and layoffs, according to the Associated Press. About 1,500 have left voluntarily or with buyouts, while another 300 have already been laid off.

All employees will receive severance packages.

Another Fortune 100 company, United Airlines, announced on May 17 that it will cut about 100 accounting jobs in Houston in July and shift the work to a contractor.

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