Ford Motor Company, beset by declining profits [WAMN: 21-Jul-05] and margins eroded by deep discounting, announced Monday a draconian restructuring plan across its North American sales and marketing organization.
The auto giant, world number three after General Motors and Toyota, declined to specify how many jobs are on the line. Anonymous insiders, however, were less coy about the scale of the decimation, predicting that between 20% and 25% of the current sales and marketing team will be laid off.
Specifically, the Ford and Lincoln-Mercury brands in the US will no longer function as separate divisions with discrete presidents and marketing/sales personnel. To all intent and purpose, the two divisions will be managerially merged.
Integration is already under way. Former president of the Ford division Darryl Hazel shifts sideways to become vice president of marketing for all three brands; while his opposite number at Lincoln-Mercury Al Giombetti takes a mirror role as vp of sales. Both kowtow to group VP for North American sales, service and marketing, Steve Lyons.
Ford cfo Don Leclair warned last month that "nothing is off the table" in the cost-cutting pogrom, including excess production capacity. The latest cost-reduction round follows the announcement earlier this year that Ford will slash up to 2,700 salaried jobs in the US and Canada.
Data sourced from Wall Street Journal Online; additional content by WARC staff