Ford Announces Plans To Trim Salaried Labor Costs By 15 Percent

June 5, 2008 2:32 p.m. EST

Detroit, MI (AHN) - Ford Motor Co. on Thursday sent an email to white collar workers revealing plans to cut salaried-related costs by 15 percent as it restructures.

With a stalled U.S. economy vehicle sales have also stalled and company officials say they don't know how many jobs it will have to cut to achieve its target goal of reducing salary costs.

It will try to achieve many of the cuts through attrition and not filling now-vacant positions. However, if more needs to be done the company said that workers will know by Aug. 1 if they are losing their jobs. But the company reportedly said it will still give the fired workers standard severance packages.

Ford said the cuts were necessary because high gas prices and a tightening economy have forced consumers to start buying fuel efficient cars instead of the more profitable trucks that the company had been selling.

The company has lost $15.3 billion during the past two years, which has offset the $100 million it made in the first three months of this year.