Ford giving underperforming employees option to voluntarily take severance

Underperforming Ford Motor Company employees now have the option to voluntarily quit their jobs to avoid having to sign up for the automaker’s performance improvement program.

“Recently, changes were made to make it easier to create severance programs in the US, reflecting market trends and internal feedback. This includes the possibility of voluntary exit instead of meeting the process of job development,” a Ford spokesperson confirmed to FOX Business. “These changes give employees choice and control over the entire experience.”

A performance enhancement program, or PEP, is designed to give employees a chance to improve before being fired by their employer. Ford’s career extension program lasts about six weeks. At least 100 employees a year are affected by the program, the spokesman said.

A voluntary redundancy scheme is available to part-time workers with eight or more years of service. White collar workers who choose to leave their jobs voluntarily will also receive continuation and job placement assistance. Employees who enroll in PEP but do not show improvement are not eligible for layoff.

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In August, the second-largest U.S. automaker laid off nearly 2,000 salaried employees and about 1,000 unionized workers in the U.S., Canada and India as part of a cost-cutting drive to shift its economy toward electric vehicles. Ford has approximately 30,000 salaried employees in the United States.

The spokesman confirmed that the carmaker is “looking at all aspects of the business to support its transition” and that there are no job cuts.

Ticker Security Finally Change it Change %
F Company opinion FORD MOTOR CO. 13.39 + 0.01 +0.07%

This story was first reported by The Wall Street Journal. As of press time, Ford shares are down nearly 38% year to date.

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In addition to Ford, a spokeswoman for Jeep and Chrysler parent Stellantis confirmed that it is offering some US salaried employees the opportunity to voluntarily leave the company as part of “its transformation into a sustainable technology company and a market leader in low-cost vehicles.”

Ticker Security Finally Change it Change %
The cost of STLA Company proposal STELLANTIS NV 13.72 + 0.21 +1.59%

Stellantis offers are available to workers aged 55 or over with at least 10 years of service, regardless of pension eligibility, and to workers with 30 years of service. The deadline to submit is Dec. 5. Stellantis has 13,000 US salaried employees.

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