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.
Water could leak into the light assemblies.
That partnership has paid off in a big way over the years.
It contains a laundry list of modifications.
It's designed for swiveling seats in autonomous vehicles.
Interest-free financing offered on all-electric full-size pickup truck.
Bummer for those three owners.
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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.
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.
Can a retiree take the buyout?
Great Minnesota shot!!!!
I think this is all because the electric vehicles are going to be a real cluster f@@@ they're seeing the writing on the wall these things are going to be an absolute disaster
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.
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.
You are absolutely correct!
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
Well said
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.
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?