Ford workers opened the email Monday to find a letter from CEO Jim Hackett at 8:30 am and an explanation of how many paid workers would leave the car dealership this week and why.
The company will see 500 salaried employees in the United States leave involuntarily this week, and 800 in total in the United States in June, Ford said. By the end of August, projects are projecting to see 7,000 volunteer and involuntary separations globally.
However, the letter does not indicate how many people in Dearborn or Michigan would be affected. The staff interview of Free Press has indicated that a significant portion would leave the world headquarters. A Ford spokesman refused to comment.
[Stay on top of Detroit̵
In letters to employees, with the subject line "Smart Redesign Update," Hackett wrote:
As we enter the last few weeks of Smart Redesign in North America, I will update you on our overall progress. But first I want to thank you for your focus and commitment … To succeed in our competitive industry and position Ford to win in a changing future, we need to reduce bureaucracy, give leaders, quick decision-making, focus on most valuable work, and cut costs. This requires intensive work across several teams in our company.
The letter continues: "We are now entering the final phase of Smart Redesign. Messages to employees in North America affected by wave four of Smart Redesign start tomorrow (May 21). The majority will be completed by May 24 . "
He noted that conversion will continue in Europe, China, South America and elsewhere, hoping to complete the reorganization by the end of August.
"Time and effort from so many of our team members help make us a stronger company, well positioned for the future," says Hackett.
Hackett said when "Smart Redesign" is completed:
- More than 80 % of our executives will have a healthy span of control of six or more direct reports, up from 35% prior to Smart Redesign
- Our average executive control panel will have increased from five direct reports to more than seven, reducing management bureaucracy by one third
- By y Øendenden, most of the organization will be structured with nine layers or less, which results in a flatter and more agile layer.At the beginning of the redesign we had up to 14 organization teams
- We identified more than 5000 concrete ideas for changing the way we work – identifying new initiatives as well as non-value creation
- We created the new Enterprise Product Line Management organization that ensures a t we handle our product lines from end to end for maximum customer orientation and profitability, as well as our Customer Experience group
- We also created the International Markets Group, focus on the customer and ensure These markets receive the attention they need to thrive and grow.
- Every competence team has fundamentally reworked their work. For example, Product Development created a new automotive architecture and testing team, a new system engineering and design security group, and expanded future investments for infotainment, software, electrification and other areas. Clearly, cost reduction is an important aspect of Smart Redesign
Overall, at the end of the process later in August, Ford will have eliminated about 7,000 service items, or about 10% of global profitability, Hackett wrote.  This includes both voluntary and involuntary separations over the past year. Within the overall and in accordance with our goal of reducing bureaucracy, we will have reduced the management structure by nearly 20%, he says. "This will result in annual savings of around $ 600 million. We have also made significant progress in eliminating red tape, speeding up decision making and empowerment as part of this redesigned."
Hackett added, "Ford is a family business and says goodbye to colleagues is difficult and emotional. We have moved away from past practice in some regions where group members who divorced had to leave immediately with their Assets, but instead give people the opportunity to stay for a few days to pack up and say goodbye, we also have a host of resources and services in place to support employees in managing this transition, I hope you take a moment to thank them personally for their service and commitment to Ford. "
Hackett ends his letter saying he is in the" awe "of the skill and dedication of the Ford team.
"I hope you can feel the driving force that we work to transform Ford into the world's most reliable company, design and smart car for a smart world," he wrote. "Thank you for everything you do for Ford."
And he signed the letter, "Jim."
Contact Phoebe Wall Howard on 3 13-222-6512 or phoward @ freepress Com . Follow her on Twitter @phoebesaid . Read more at Ford and sign up for our newsletter .
Read or Share this story: https://www.freep.com/story/money/cars/ford / 2019/05/20 / Ford layoffs-Dearborn / 3739354002 /