Ford announces 7,000 job cuts globally by end of August

Car giant Ford is cutting about 7,000 jobs by the end of August, about a tenth of its global workforce.

The car maker will reduce its US workforce by 2,300 as it seeks to save $600m (£470m) per year.

Most of the jobs to go are management roles, Ford said. Cuts are to be made through a mix of voluntary and compulsory redundancies. About 1,500 staff have already left and a further 500 will be let go this week.

In a memo to employees on Monday chief executive Jim Hackett said the fourth wave of the restructuring will start on Tuesday, with the majority of cuts being finished by 24 May.

“To succeed in our competitive industry, and position Ford to win in a fast-charging future, we must reduce bureaucracy, empower managers, speed decision making and focus on the most valuable work, and cost cuts,” Mr Hackett wrote.

In the US about 1,500 white-collar employees left the company voluntarily since the restructuring began last year, some taking buy-outs.

About 300 have been laid off already, with another 500 lay-offs starting this week.

Most of Ford's white-collar workers are in and around the company's Dearborn, Michigan, headquarters.