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Employment lawLatest NewsRedundancy

Ford to cut 14,000 jobs in the US

by Michael Millar 15 Sep 2006
by Michael Millar 15 Sep 2006

The Ford motor company is to cut 14,000 jobs in the US in a bid to cut costs by about $5bn (£2.65bn) by the end of 2008.

The company posted a $123m (£66.5m) loss in the second quarter 2006 and will close 16 factories by 2008, instead of shutting 12 by 2012 as it announced at the start of the year.

Ford employs a total of 300,000 people across the globe.

Last week, the firm replaced Bill Ford, the great-grandson of the firm’s founder, with a new chief executive, Alan Mulally.

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Mulally was previously head of Boeing’s commercial aircraft division, and experts say he is highly-skilled at cutting costs.

Ford’s ill-fortune has been partly put down to a change in buying habits among consumers, who now prefer energy efficient cars rather than ‘gas guzzlers’.

Michael Millar

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