Diminished sales have forced Ford Motor Co. to make plans to reduce its white-collar work force by 1,700 by October. The firm also said it has taken the first step in a possible spin off its Hertz car rental unit.
The 1,700 positions represent about 5% of Ford’s white-collar work force, and could come from attrition, layoffs, retirements or a combination of the three. The departments where cuts will be made have yet to be determined, Ford spokesperson Oscar Suris said.
“We are not giving any specifics as of yet, but our objective is to remove approximately 1,700 white-collar jobs by Oct. 1,” Suris said.
Ford is also cutting its contribution to salaried employee’s 401(k) plans on July 1. The company currently matches at 60 cents on the dollar, up to 5% of the employee’s salary. Bonuses for salaried employees will also be eliminated, Suris said.
Plans also call for agency and purchased services to be cut by 10%.
Though Ford warned investors on Tuesday that its 2005 earnings per share would be less than expected, it recorded first-quarter revenues of $45.1 billion, up slightly from $44.7 billion in the year-ago period.
