On Monday, the Ford Motor Company informed it’s employees publicly that it would be laying off 7,000 workers, most from the Detroit, Michigan area.
This week will see at least 500 salaried workers involuntarily being let go with another 300 following them in a few weeks. I’ve always said that a job is never a family thing, but some officials like to promote that so that it’s easier to let the unsuspecting ones go with parties and tears.
“Ford is a family company and saying goodbye to colleagues is difficult and emotional,” Ford CEO James Hackett said in a email Monday. “We have moved away from past practices in some regions where team members who were separate had to leave immediately with their belongings, instead giving people the choice to stay a few days to wrap up and say goodbye.”
Using the “family” analogy only adds insult to injury for those affected.
The cuts are part of a massive reorganization that will ultimately result in 7,000 voluntary and involuntary separations worldwide through August. The goal is to remove layers of management, give managers more authority and decide which skills are valuable for the future. The move, it said, will save Ford about $600 million a year.
“As we enter the final weeks of Smart Redesign in North America, I want to update you on our overall progress,” Hackett said in the email. “To succeed in our competitive industry, and position Ford to win in a fast-changing future, we must reduce bureaucracy, empower managers, speed decision making, focus on the most valuable work and cut costs. This required intensive work across multiple layers of our company.” [Breitbart]
So let’s get this straight: the layers of management added in the past by the top guys are now not needed. One wonders if they ever were needed.
Big companies like federal state and local governments form a bureaucracy where they create useless white collared positions so that those with connections can get good paying jobs.
Once the find that it is not economically feasible and they also find that they are 200 people just shuffling papers from one office to the next the layoffs occur. Personally, I would like to see a similar event happen with my own state government. They would save the taxpayer millions with no loss of services if it did.
What we really need to do is lay-off 35% of the federal government employees in all departments and agencies. That way, we could reduce the federal debt significantly.