Ford cutting 25 to 30 thousand jobs

[huckster]

big changes for the state of Michigan , the auto capital of the world.. this will impact alot of other jobs in the state .. oakland county thrives on them .. PD to all those who will be jobless..

 

[Colleen456]

I'm extremely grateful that my BIL (sister's hubby) isn't going to lose his job but I'm heartbroken for those that are. Its so sad, growing up in Ford Country I know the pain and devastation this will cause.

They need to remember that when they outsource jobs that people can't afford to buy new cars. And some of the changes that they are making now should have been done years ago...not just because they are in dire straights.

Prayers for all the families who have or will lose their jobs.

 

[wvrevy]

And this shortly after announcing a 2 BILLION dollar profit for 2005. Makes you wonder how much money is enough for some people...

 

[mommaU4]

I cannot even imagine that. Just think of all the families that will be affected. All the parents and their kids. So sad.

Work is already so hard to find around here (at least up in our neck of the woods it is). When we moved here all my family told us the cost of living would be so much cheaper than it was in CA. Well, so far I haven't seen it. Not in day-to-day living. Food, clothing, etc. is all the same, but we took a huge cut in pay.

Well, my heart goes out to all those who will be struggling now due to this situation and I hope they are able to get back on track soon.

 

[caitycaity]

and it won't be just ford either. the layoffs at ford will affect a lot of companies that contract with ford. my uncle works for a company that spun off from ford and he might be laid off due to the ford layoffs.

 

[Tigger_Magic]

And this shortly after announcing a 2 BILLION dollar profit for 2005. Makes you wonder how much money is enough for some people...

Lest someone get the wrong idea, let's look at all the facts about Ford's profits. Ford's 2005 Q4 profits were $124 million, which sounds great, until you realize that was primarily due to the sale of Hertz car rental (a one-time bump) and improved profits on luxury brands.

The $2 billion profit for 2005 is actually a drop of 42%. Ford stock earned a whopping 26 cents/share. That was 26 times what most analysts expected, but still not much of a reason for shareholders to pop the champagne corks just yet.

When you consider what those profits have to pay for, $2 billion is obviously not enough to keep over 300,000 people employed.

I feel sorry for those who will lose their jobs. However, Ford faces some tough choices if they expect to remain in business. Sometimes it is necessary to "trim some fat" to keep the company in shape for the future.

 

[anfolio]

I agree with Tigger that ford is in bad shape. The designs of their recent cars have been so dull its hurting sales. Thats got to be so tough for all of the families affected by the layoffs..

 

[wvrevy]

Yes, Tigger_Magic...Let's make sure we apologize for the massive corporation cutting the jobs of thousands of workers because they didn't make quite as much profit this year as they did last year. Sorry...$2,000,000,000 is still $2,000,000,000 PROFIT, not "gross". Yes, it was a drop from the roughly 3.4 billion they profited last year, but the company is hardly in the red.

But that's ok...they'll always have people willing to apologize for them, no matter how they decide to screw over the little guy. Meanwhile, I heard the CEO was so upset over this decision, he decided to cut his vacation on his private yacht short by a whole week, just to show he cares...

 

[tandrjohn]

And this shortly after announcing a 2 BILLION dollar profit for 2005. Makes you wonder how much money is enough for some people...

In 2005, Ford's North American operations lost $1.6 billion pre-tax and the $2 billion in profit was due mainly to Ford's Motor Credit division. Ford is bleeding money fast - they are losing market share and their factories are underutilized (only 75% productive I think). IMO, the cuts, however painful, are necessary in order to save the entire company.

Not that it matters but my FIL just retired from Ford last year after 32 years of service. I also live in SE Michigan and have seen Ford go through some great and now bad times. I love Ford products and haven't driven anything else in 20 years.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20060123/AUTO01/601230413

 

[Chicago526]

While I do feel bad for those effected by the layoffs (and I do, I can't even imagine how this turns a family's world upside down), you can't say that we didn't see this comming. Like it or not, the US can't compete with foreign labor in manufactoring. They make 1/4 as much per house with little or no benifits, and no unions. The average person needs to take it upon themselves to make sure they have skills that can be used in more than one career or industry, and to have back-up plans and emergency savings. We can't rely on corporate America or the government.

 

[Sylvester McBean]

30,000 jobs is unreal. but when you think about salaries and benefit packages, that's a large amount of capital. the UAW must be reeling. still, that's way too many familes put into a horrible situation.

 

[Tigger_Magic]

30,000 jobs would be 10% of Ford's current employees. If Ford is like most companies, they could easily achieve 50% of the cuts in management alone without any noticable impact on the company. However, given that they announced they are planning to close over a dozen plants, it appears more likely that the cuts will weigh heavily toward the rank and file workers.

One news report said the UAW may have to approve some of the layoffs due to clauses in the union contracts.

If I were working for Ford, I'd be looking into any available training classes and getting my resume ready for a job hunt. Like others have said, this isn't easy, but it is practically inevitable.

 

[ACvmk]

Meanwhile, I heard the CEO was so upset over this decision, he decided to cut his vacation on his private yacht short by a whole week, just to show he cares...

Well that was certainly nice of him. A real team player. Certainly, a job well done...cut jobs, increased overall profit/bottom line. Therefore it now must be time for annual bonuses and stock options.

 

[mickeysgal]

The effects of a layoff by this company is going to be far reaching. From companies that had contracts with Ford, to local businesses in and around the plant, to real estate values of homes in the area. Sad, sad, sad.

 

[Mommy2three]

my dh informed me of this this morning. He works for a trucking company called Mike brooks inc that delivers ford parts from plant to plant and was told that several of the plants will be shut down and many will be laid off. I really hope this doesnt affect his job, we will find out more by the end of the week

 

[The Mystery Machine]

St. Louis will be hit too. One of the reasons we left there and moved to Texas. That poor city is just losing so many companies, it is sad.

http://www.allheadlinenews.com/articles/7002051097

The nation's second largest automaker says it will close three U.S. assembly plants, in St. Louis, Wixom, Michigan and Atlanta, as well as two other assembly plants yet to be decided. Other plants to be closed are powertrain and stamping plants. The cuts will trim its North American capacity by more than a quarter.



The cuts, which will not take effect until 2012, represent about 18 to 21 percent of the employees in its North American auto operations. The closing will cut even deeper into U.S. hourly employment of 82,000.

 

[Pinnie]

I think Ford rested too long and should have been more proactive years ago like Chrysler was with their cuts. Chrysler cut to the BONE years ago. I think GM will be soon folowing.

pinnie

 

[drakethib]

Man this is sad.

I have to wonder though and I mean no disrespect, are the union demands hurting the company or is it something else.

 

[mickeyfan2]

I have to wonder though and I mean no disrespect, are the union demands hurting the company or is it something else.

It is one factor but not the only one. Retirement payments are hurting, slow sales, over capacity and the list goes on.

 

[cardaway]

I have to wonder though and I mean no disrespect, are the union demands hurting the company or is it something else.

No doubt. They all but striked themselves out of a job. If they had it to do all over again I wonder if they would choose to make less and still have a job. Reality checks will replacing the other checks.