Ford Motor Company has begun a new round of job cuts.
The automaker plans to lay off 7,000 white-collar workers globally by August to "prepare for a fast-changing future."
The company said Monday that the plan will save about $600 million per year by eliminating bureaucracy and increasing the number of workers reporting to each manager. The cut amounts to 10 percent of Ford's global salaried workforce.
Michelle Krebs is an analyst with Autotrader. She says Ford's plan is to wring every penny out of its current operations for future investments.
“They have to focus on today's business, and they have to face the reality that we could face a downturn in the next couple of years and at the same time, they've gotta be investing in the new technologies of the future -- electric vehicles, autonomous vehicles, new mobility services,” she says.
Krebs says similar layoffs have been going on at General Motors for the same reasons.
In the U.S., about 2,300 jobs will be cut through buyouts and layoffs. About 1,500 already have happened. About 500 workers will be let go this week.