Ford Motor Co. said Thursday it will cut salaried employee costs by 15 percent by August 1 and some people will loose their jobs.
The move comes as the automaker adapts to a deeper-than-expected slump in U.S. vehicle sales, led by declines in sales of pickup trucks and SUVs.
This unfortunately will result in involuntary separations of Ford employees and agency personnel as well as cost savings through attrition and the consolidation of open positions, said Mark Fields, president of Ford's Americas division in an email message.
Each facility will form its own plan to meet the 15 percent target, which doesn't translate into a same-size cut in the salaried workforce, she said.
Ford, the No. 2 U.S. automaker, has about 24,300 salaried workers in North America.
The automaker has lost $15.3 billion since 2006 and recently retreated from its announced target of returning to profitability in 2009.