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Filed under: Ford, Earnings/Financials
In a filing with the Securities and Exchange Commission that surfaced yesterday, Ford estimated that it the accelerated restructuring plan announced last September will cost $11.2 billion when the books are finally balanced. In other words, it will cost Ford$11.2 billion to let go of 38,000 hourly and 10,000 salaried workers. The estimate includes ongoing costs for health care for any workers that didn't take the lump-sum buyout. Who knew it was that expensive to reduce your workforce?
If there is any good news here, it's that Ford has already accounted for $10 billion of that cost in 2006. The rest of the associated costs of the restructuring plan will be billed to the first quarter of 2007. Nothing like pulling the Band-Aid off quickly.
[Source: Automotive News - sub. req'd]
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In a filing with the Securities and Exchange Commission that surfaced yesterday, Ford estimated that it the accelerated restructuring plan announced last September will cost $11.2 billion when the books are finally balanced. In other words, it will cost Ford$11.2 billion to let go of 38,000 hourly and 10,000 salaried workers. The estimate includes ongoing costs for health care for any workers that didn't take the lump-sum buyout. Who knew it was that expensive to reduce your workforce?If there is any good news here, it's that Ford has already accounted for $10 billion of that cost in 2006. The rest of the associated costs of the restructuring plan will be billed to the first quarter of 2007. Nothing like pulling the Band-Aid off quickly.
[Source: Automotive News - sub. req'd]
Read | Permalink | Email this | Comments
BOLD MOVES: THE FUTURE OF FORD A new documentary series. Be part of the transformation as it happens in real-time
More...