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Ford Authority

Details Surrounding New Ford Buyout Plan Being Reviewed By Workers

Ford CEO Jim Farley made it clear some time ago that he believes the automaker is a bit overstaffed, and hinted that cuts were coming. Rumors of pending layoffs followed just a few weeks later, which prompted Farley to address the matter with employees via a video message. Ultimately, The Blue Oval wound up cutting a grand total of 3,000 salaried positions in the U.S., Canada, and India, and as Ford Authority reported last week, details of a Ford buyout plan for those employees were expected to be revealed this week. Now, the Detroit Free Press has indeed reported on those details, as expected.

Severance packages for affected employees range in the Ford buyout plan, and are based on years of service. Some employees have reportedly received up to nine months of severance pay, which will be distributed as a lump sum around a month after they accept the package. Those who have worked for FoMoCo for 10 years are reportedly getting four months’ pay plus six months of medical, while those with five years or less are receiving a sum equivalent to a month’s pay.

Additionally, medical coverage is also being offered on the same basis of time served, ranging from three to nine months of coverage based on length of service, starting at one month for those with a year-plus at the company. Additionally, those that are eligible for retirement can choose to take the severance and still collect retirement funds as well.

There is one catch – employees must sign a waiver to be eligible for this severance pay, and they have 45 calendar days to do so from the time they’re notified of their pending layoff. Employees also have seven calendar days to change their mind after signing the waiver (or 15 days in Minnesota). As for other perks, those that have a company vehicle will be able to keep it for a month after their termination, though they won’t have to return any equipment that was taken home during the pandemic.

We’ll have more on these layoffs soon, so be sure and subscribe to Ford Authority for ongoing Ford news coverage.

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

    Ford should take a look at what Consolidated rail corp did in the early 80’s the it was losing $1M/day. We began with offering any trainman who wanted to leave regardless of service, 1 day or 25+ years a buy, no strings but the company got the right to blank a job, never to be filled. The UTU took the offer since it proved to their benefit, too. This is why all class I rails run with one engineer and one conductor.

    Reply
  2. Steve

    This is what trying to force EVs down our throats looks like. Ford’s unhinged CEO told the truck department that their job currently is to fund the EV side through sales, and that their jobs will be canned after EV side is up and running.

    Reply
  3. Lana Martin

    Can a retiree take the buyout?

    Reply
  4. Shoemanji

    Great Minnesota shot!!!!

    Reply
  5. Mike Hunt

    I think this is all because the electric vehicles are going to be a real cluster [email protected]@@ they’re seeing the writing on the wall these things are going to be an absolute disaster

    Reply
  6. Michael

    Talking about a recession created by the US Fed. Every major company is talking about laying off ( or firing ) thousands of employees. If that does not create a recession, I do not know what will.

    Reply
  7. Chris

    I would not call the bayouts, they are the severance package when Ford fires you without your agreement.
    Buyouts are usually voluntary separation packages that people take to voluntarily leave the company.

    Reply
    1. Glenda

      You are absolutely correct!

      Reply
  8. Troy

    The fed raised rates, you’ll see a ton of layoffs soon. The fed warned us this is the forecast coming. Car prices are so inflated so this is the way the fed and government slow the economy and money print and rates cause this trend of layoffs

    Reply
    1. Teresa

      Well said

      Reply
  9. JIM

    AS A FORD DEALER FOR FIFTY YEARS WE HAVE SEEN THE WRITING ON THE WALL FOR THE PAST YEAR. MANAGEMENT ARE JUST READING OFF A SCRIPT WHEN YOU ASK THEM ANY QUESTION, THEY JUST DON’T KNOW HOW TO ANWSER IT OR BEING TOLD NOT TO! MUSHROOM FEED YOU S### AND KEEP YOU IN THE DARK.

    Reply
  10. Boi Kotch

    FORD is circling the drain. They are a sluggish antiquated corporate behemoth which has very little regard for the customer. They are laying off the very people who could make their product better, but they would rather pick a fight with Tesla and lose. If they build EV’s as poorly as they build ICE there will be a blue light special on Fords as they go the way of many other brands before them. Ford can’t get the electrical system right on an ICE how the heck will they build an EV?

    Reply
  11. Juztquezt

    How about building m bronco before laying people off

    Reply
  12. Dale

    I 100% understand the shift to electric vehicle’s, it seems we are not ready to go 100% electric thou. I don’t understand why Ford waits for things to go in action before that jump in. I’m thinking we should of started to force 100% electric on all yard equipment first , bc yard equipment don’t have pollution restrictions on them.

    Reply
    1. Andrew

      Yea, no thanks. Have you seen the price of electric ride on mowers? It’s nuts. The equivalent mower I paid $4k for is like $7500 in electric.

      Reply
  13. Mickey

    Ford like others are putting the EV carage before the horse. This is about government money pouring fuel on a unstable product for union votes. To much to early.

    Reply
  14. John W Bannen

    Blaming it n EV’s shows how dumb people really are. That is why Billionaires control our Government while idiots scream “your taking away our rights” The move is technology motivated as layoffs have been from 70’s to present. Retraining is what will happen and right now it is easy to get a great paying job with signing bonus with benefits to die for.

    Reply
  15. John W Bannen

    I have been driving EV’s since 2000 when my 1st son was born. I put a huge solar system on my house and bought a 1994 Geo Prism made by US ELECTRICAR that had lead acid batteries and got 35 miles to the charge. Used a 240V paddle charger that plugged in under rear license place. Wife drove it to work and loved she never stank like gas when arriving to work. In 2007 replaced it with a 2002 Toyota Rav 4 EV that got 80 miles to the charge. Using solar we never paid a dime to operate those cars other than wipers, tires abd wash. My family then moved on to a Volt in 2016 that was my wife’s birthday present which we still have. I also own a 2014 Cadillac ELR which is the best looking car I have ever owned only 1300 and some made. My wife and I are looking to by our next new car soon and the choices make it very exciting. With solar power we never have to pay a fuel bill again. My collector cars 1986 Fiero GT and my son’s 1994 Firebird Formula will be the only cars I will have to pay to operate. The cost of a solar system with back up today is cheap. After the cost of solar system and a EV will pay for itself in 7 years or less. Then you power your all electric house and car for free. How terrible is that!

    Reply
    1. Bonita

      1977 Firebird! Gasoline powered!

      Reply
  16. Bonita

    Keep America Great! Gas and Diesel powered trucks made in USA!

    Reply
  17. Vince

    Got my Timberline that I ordered 2 weeks ago! I ordered it 11/9/2021! Got all my chips in mine….. One thing is certain, you can’t shame this organization since the aristocrats that own this company are the owners of the Detoilet Lions. They have the humility of a Kirby vacuum sales person going door to door……

    Reply

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