Ford offers buyout for select skill teams, plans to attract software employees

After the 2020 Pandemic led to slashing down many jobs, Ford decides to offer buyouts to selected employees. They sent out the option to employees in the select skill teams to align company priorities. Ford denied providing information about the select skill teams or about the field.

Ford offers voluntary buyout program for 1,000 U.S. employees
Image credits- CNBC

Ford reported to Detroit News, “We have offered a voluntary separation program to eligible U.S. salaried employees in select skill teams. This action is to further enable us to match our business priorities with the critical skills needed to turn around our automotive operations and deliver the Ford+ plan.”

Other details like when will the offer expire or how it is taken by the employees are not known. The buyout option allows the employees to leave the company with a lump-sum cash severance payment and any other benefits depending on the employee’s role in the company. As stated by Brently, the severance can vary as follows,

  • 0  to 5 years qualifies for one month of severance
  • 6 to 9 years qualifies for two months
  • 10 to 13 years qualifies for three months
  • 14 to 16 years qualifies for four months
  • 17 to 19 years qualifies for five months
  • 20 or more years qualifies for six months

New strategy to enhance commercial relations

This year Ford has been pushing its goals towards electrifying its fleet and building commercial relationships. Ford’s electric crossover, Mustang Mach-E Fanclub formed this year. Then F-150 Lightning’s popularity grew after president Joe Biden drove the electric pick-up and stated that it is fast as a beast.

Looking ahead, Ford plans to focus on subscription and over-air digital services. Also, they are working on data, testing, architecture, design, and other technical aspects with 7,000 software engineers working in Canada and the US. Director of business operations, enterprise connectivity Alex Purdy said,  “We’re sitting at a point the industry that’s transforming and a company that’s transforming,”

He added, “I was trying to recruit somebody from Google just last week and they’re coming from a business that encourages consumers to click on ads. We’re coming from a business that is going to bring mobility to a whole new generation.” Ford already hired 600 software employees in the first half of 2021 and is trying to bring in other talented employees from various locations.

Furthermore, Brentley said, “We are reshaping our workforce to match the critical skills and positions needed to continue to transform our business. Staffing adjustments, including hiring and separations, are part of a multiyear process to align talent with our cycle and service plan and to turn around our automotive operations.”