Auto giant Ford is looking to buy out 1,000 salaried positions nationwide, using a variety of voluntary, seniority-based severance packages to incentivize employees to resign, CNBC reported Thursday.
Ford first notified employees of the buyout program last month, according to a company spokesperson interviewed by the network.
Buyouts start at one month of severance and benefits for Ford employees for five years or less, it was reported. The largest incentives apply to employees of over 20 years: in addition to six months of severance and benefits, they also receive reemployment assistance for the same amount of time.
In response to a semiconductor chip shortage, Ford slashed vehicle production across North America in June. The automaker idled or cut production at eight plants, temporarily laid off workers, and projected it would lose about 50% of its vehicle production in the second quarter of 2021.
