Ford Offers Buyouts to Cut Workforce

15 September 2006

DETROIT: Troubled auto giant Ford Motor Company is planning to offer buyouts to all its 75,000 US factory workers in a bid to cut its payroll roll costs by nearly a third.

The company, which has posted losses of $1.3 billion (€1.01bn; £688m) in the first half of 2006, says it will offer up to $140,000 to each worker willing to go voluntarily or take early retirement.

The move is part of the number two US automaker's increasingly urgent restructuring efforts, which have included the appointment of Boeing executive Alan Mulally as ceo [WARC News: 07-Sept-06] and the departure of chief operating officer Anne Stevens.

Data sourced from BBC Online; additional content by WARC staff