Ford aims to cut workforce by 1,400: RPT

Yahoo Finance's Kristin Myers and Sibile Marcellus discuss how Ford told employees buyouts are coming, according to multiple reports.

Video Transcript

KRISTIN MYERS: Sibile, what's the latest?

SIBILE MARCELLUS: That's right. So the unemployment rate is still in double-digit territory. And we saw at the beginning of the coronavirus shut down millions of low-income workers lost their jobs. But high-wage earners have not been immune from job cuts.

In fact, today, Ford Motor Company announced that at least 1,400 white collar jobs would be cut. Now, the way they're going to achieve this is by offering buyout packages to employees who are white collar, but who are planning or at least eligible to retire at the end of the year. So they are going to be offered these buyout packages. But if not enough of them actually take it, then forced layoffs would ensue.

Now, Ford is not the only one targeting white collar jobs. United Airlines today announced that if by October 1 they don't get another bailout for the airline industry, they are going to be laying off or furloughing 16,370 workers. And among that, they're counting over 1,000 management and administrative positions.

KRISTIN MYERS: All right, thanks, Sibile.