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Ford Authority

Ford Alters Underperforming Employee Policy For Certain Workers

Ford has altered a policy aimed at certain white-collar workers who are underperforming, giving them a choice of two options if the company feels they are not improving, per The Wall Street Journal. As Ford Authority previously reported, this new policy follows a broad headcount reduction at the automaker partially instituted as a result of its ongoing pivot away from internal combustion vehicles.

Primarily, the policy change impacts employees with eight or more years at The Blue Oval who are deemed to be declining performers. Those who fall under the designation will be given a choice to enroll in a performance enhancement program or severance. The latter option won’t be available to workers who opt for the enhancement plan only to fail, and employees with less than eight years of employment at the automaker can be subject to severance without any option to join an enhancement program. This new policy was transmitted to all U.S. managers and is meant to streamline how the company deals with underperforming employees. Currently, Ford has 30,000 salaried employees in the U.S.

This policy change arrives not long after Ford issued an employees buyout plan for 3,000 salaried workers. That plan came to fruition as the company aims to reduce its overall headcount amid its ongoing pivot toward fully electric vehicles, a $50 billion endeavor coinciding with a broad complexity reduction initiative taking hold at Ford Blue, the company’s new division responsible for its internal combustion lineup. Aside from reducing headcount, The Blue Oval is also reorienting its workforce toward electric vehicle research and software development for the next generation of EVs and the battery technology that goes with it. Additionally, the automaker is also increasingly focused on software as it expands its roster of subscription-based services for commercial and retail customers.

We’ll have more on Ford’s ongoing changes soon, so subscribe to Ford Authority for the latest Ford news.

Ed owns a 1986 Ford Taurus LX, and he routinely daydreams about buying another one, a fantasy that may someday become a reality.

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Comments

  1. David Dickinson II

    Well, it’s about time they stuck Farley on a remediation plan.

    Reply
    1. Old Sea Captain (Five Stars)

      I enjoyed this! Thank you!

      Reply
  2. Greggt

    I guess considering Farley has less than 8 years, he doesn’t get to enroll!!

    Reply
  3. JDE

    The real reason they are doing this type of thing, “The U.S. auto maker made moves to streamline its white-collar workforce in recent months as part of a broader effort to slash costs by about $3 billion annually by 2026. The belt-tightening aims to free up more money to fund a costly long-term transition to electric vehicles, a market that is now dominated by rival Tesla Inc.”
    If the Electric division is actually separate then let the workers in that group be the ones canned.

    Reply
    1. David Dickinson II

      Further, Ford expects the ICE Division to fund the money-losing EV Division. We’ll see if Farley’s BIG bet pays off.

      Reply
    2. RWFA

      You are assuming an incorrect direct causal linkage. But that should have been obvious to the most casual observer.

      The company will search for savings throughout the personnel organization, since ICE is funding BEV, ice tech will be scaled back and wound down and that’s where the cuts will have to be.

      Reply
      1. Sam

        Jim Farley stated himself that the ICE division’s job is to fund EVs. He is simply using and abusing workers at this point.

        Reply
      2. JDE

        I am actually quoting another article there. Basically this program was intended to help financially support the BEV program.

        Reply
  4. RWFA

    Ford has had several of these programs over the last 25 years. Usually targeted are the older more highly-compensated non-Union sub-managerial levels.

    It always starts with getting rid of a number of employees (after all, why not, that’s the goal), and ends in age discrimination lawsuits that ford has to settle.

    Given that they keep doing this just in different forms and steps shows that the cost of discrimination settlements is still less than the savings overall so the cycle will repeat.

    Reply
    1. GaryB

      This comment makes the most sense.

      Reply
  5. Al

    “performance enhancement program” sounds like Ford’s version of a Chinese reeducation camp to me. It’s easy to pin any employee into a category of underperforming if you want to get rid of them. It may not be their work accomplishments they measure but more their social score. Being that Ford has now gone woke, my advise to Ford employees is watch what you tweet.

    Reply
  6. Ticked off performer

    So glad I worked hard and performed. When I retired in April they swore there would be no more severance packages. Now they give packages to F-ups. Unbelievable.

    Reply
  7. Michael

    Jim Farley should be #1 on the remediation list.

    Reply
  8. Stanley Brizzie

    I just want a F250 extra cab with an 8 foot bed and really the only creature comfort is cruise control, electric door locks, windows and air conditioning that will get decent fuel milage, have a dependable transmission, engine a working man can afford. Do not need all this gobeldegoo you put into them. A workman’s truck that is comfortable and efficient. Get with it. I do not care if the body style or engine ever changes as long as it gets me to the JOB. I know you short bed pickup owners will not understand what I’m talking about.

    Reply

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