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Ford Buyout Program Initiated For Company Employees: Exclusive

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Employee buyout programs have been around for some time now, and they are quite useful for companies looking to reduce costs, avoid or delay potential layoffs, or even do a bit of restructuring. Essentially, companies will offer select employees a voluntary severance package, which usually includes benefits and pay for a specified amount of time. In some cases, those jobs were planned to be eliminated anyway, so it can be a win for both sides. Now, Ford Authority has learned from a source familiar with company plans that a Ford buyout program has been initiated for central office employees.

This Ford buyout program includes six months of salary and six months of healthcare benefits and appears to be geared toward older workers. Those workers may be on the cusp of retirement anyway, so a severance package could provide a way to accelerate those plans and avoid layoffs or job eliminations at the same time.

This isn’t the first time Ford has offered retirement incentives, which it previously sweetened back in 2018 in an effort to lighten the company’s payroll. At that time, the automaker offered a lump sum payment equal to nine months of base pay for white-collar employees 55 or older with at least 10 years of service, those 65 years or older with at least 5 years of service, and to workers of any age with at least 30 years of service.

Back in 2019, Ford also announced that it would pay eligible production and skilled trade workers $60,000 to retire or leave the company, while those affected by the closing of the Ford Romeo Engine Plant would receive even larger bonuses. Employees had until last February to decide if they were willing to take the bonus or not.

We’ll have more on Ford’s new buyout program soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

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Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. Jim Glass

    Absolutely the best way to reduce forces without creating a load of anger by the unions. At Conrail, we did this and it was available to employees regardless of tenure. The key is management’s right to replace those positions vacated by those choosing to accept the buyout.

    Reply
    1. FORD FAIRLANE

      This isn’t the unions. This is salary workers. Salary workers that have been a part of this (in) voluntary separation cycle every other year for at least the last 14 years. Look at what the unions get in separation packages vs salary employees and it laughable. The salary programs are significantly worse than the union programs. There is no parity at all because somewhere along the way it was determined that unions needed to be coddled. If a union doesn’t like something, they can draw attention by whining, complaining, engaging in work slowdowns or strikes. Guess what happens when a salary employee does that? They are shown the door. It’s a joke.

      Reply
  2. Lee hellinger

    Love the new Bronco and looking forward to buying one very soon so it can sit in my backyard 😀rusting.

    Reply
    1. Harley

      The new Ford Bronco will put Jeep out of Business!

      Reply
  3. Bruce Holberg

    Anyone else notice that Farley has nearly disappeared from the media lately? Is there trouble in the Glass House?

    Reply
  4. Marv Ferrell

    Romeo engine clock ticking how soon will buy out packages be available????? Sure would be valuable information employees have lives and would like to be able to make a decision win win for both sides Thank You!!!

    Reply
  5. Bob Konicki

    Glad I left 12 31 2018! Waiting on my F350. I hope all of my former colleagues and friends (from around the world) are going to be ok.

    Reply
  6. Mike M

    Starting to wonder if this isn’t a slow slide to complete Volkswagen ownership: Two years ago cut thousands’ of engineering jobs (11.5 billion out of R&D) cut all the car lines, and now buying electric MEB chassis’ from VW for future vehicles. And, now employee buyouts to cut even more. Welcome to the “new” Volkswagen/Ford (in name only).

    Reply
  7. Jorge Paulino

    Ford Fiestas with around 15,000 or not even 1 year of use have chronic driving problems.
    In Portugal, on the Facebook page Ford Fanatics in Portugal, there are dozens of videos and hundreds of comments about this problem and already reported to Ford, in which he simply dismisses the responsibility and says that it is a problem that is already recognized (not only in Fiesta but on almost all models) but not important.

    This problem is exhausting and shameful because the current Ford owners (where they spent a lot of money) and I write to be a warning to new buyers to avoid buying these rotten cars…
    These are not new cars, they are old cars as they spend more time in the repair shops than old cars from other brands with less problems.

    People buy Fords and I think they will have a few years of rest, (but there are so many problems with electronics, suspension, steering, etc..) that after a few months and with about 15000 KM from the purchase, they will have immense pains. head to solve this Problem.

    The problem that has already been solved in one or the other, they think it will be the steering column, or that is where the electric steering module is (apparently). Nobody knows anything.
    In one situation, the buyer was left without 15 days and without a replacement car because he took the steering column, it didn’t take the noise, neither did the steering box, but the repair in each one costs around €2,000, for the reason that Ford does not mention these problems.

    Reply

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