Cars and Drivers
Ford to Cut Underperforming Workers, but CEO Remains
Published:
Ford Motor Co. (NYSE: F) has come up with a novel idea. Underperforming white-collar workers can take a buyout or they can be trained to achieve better. Why not just fire people? It appears to be a thinly veiled PR stunt to lay off people without saying the company wants to cut costs. To make matters more confusing, the worst performing person at Ford, CEO Jim Farley, will not be trained to improve his job performance.
[in-text-ad]
Ford managers decide who is performing well and who is not. According to The Wall Street Journal, these managers will single out white-collar workers based on their job performance. The system is complex. Mostly people who have been with Ford for eight or more years will be part of the program. Usually, the longer someone has been at a company, the more they are paid for the job they do. These people also tend to be older. That makes Ford look bad.
The report says the “enhancement” plans to improve performance can take four to six weeks. If people do not improve, they do not get the severance. The training programs can be an “intense period of work.” It seems people who want to keep their jobs would do that.
On a 10-point performance scale with 10 as the best, CEO Jim Farley gets a 2. Ford’s stock is down 37% this year. The company spent $1 billion more than expected last quarter. Management at one of the world’s largest car companies should have seen the problem much earlier than they did.
Ford also did not figure out what some components of its electric vehicles would cost when it announced what consumers would have to pay for them. So, after the fact, it raised the prices of the F-150 Lightning and the Mustang Mach-E by thousands of dollars each.
24/7 Wall St.Ford cannot make the excuse that Farley is new to his job and needs more training. He has been chief executive since October 2020 and held a number of senior management jobs before that.
The next time Ford wants to announce a program for underperformers, it should ask who might be on the list before starting.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
