A few of LL in our organization suddenly announce that they are retiring at the end of THIS month. Looks that they smell something is coming. If you heard Fartley's interview today. He mentioned that after UAW contracts, Ford needs to cut cost in other areas to be competitive. Most people guess that cut will come from the white collars. We will see it pretty soon.
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@2glz+1pGMVEOB, I agree with your analysis. In the SIRP of 2022 and 2023, LL6 were practically not affected. Most affected are GSRs. After the UAW contract, and considering the current Ford Financial pit fall of EV, it is not surprise that LL6 or above will be affected in the coming cut. Some LLs may already feel the threat of dropping kn--e, so they decide to retire before Dec.
I strongly believe the reason for these LLs retirements is the one posted below by some, A.K.A, interest rates making an smaller lump sum. However, there are a couple of details that might strike the OP's layoff fears.
Number one, and most compelling, why these LLs didn't do it last year, saving 20% of the lump sum? The calculations showed last year was the best moment to retire with a lump sum. Let's say they didn't have the 20 years minimum (or the age). While missing the last year meant "working for free 3 years", this time is only "working for free 1 year", meaning that by staying just 2 years they will come ahead.
If you want to pile up more, the closer we get to a recession, the better the odds of lower interest rates. Many economists are predicting next year we'll have one (25%) or a big slowdown. Just looking at the CD rates, it is noticeable that over 12 months in length, the rates go down for at least 1%, showing the banks believe the interest rates are going to come down next year. Therefore, staying 2 more years at Ford will probably mean a bigger lump sum. Besides, LLs are plentfully compensated, particularly for the awful job they do (most of them anyway).
Now, my second reason is based on a hunch. One of my previous managers decided to retire too, a few years back. He didn't retire before, and survived the layoffs and reorgs of 2019. Regarding his contributions to the company, he was a zero, or better said, a minus LL6 salary. However, one day, out of the blue, he announced his retirement. Which was weird (no health issues, no family problems). Around 4 months after his retirement, during another reorg, one of the LL6s under the same LL5 was let go and the team merged with others. Therefore, many people in the team believe, as I do, that my ex-LL6 knew cuts were coming for him, and decided to leave in time.
Jane, you ignorant sl-t! There is no special retirement package expiring at the end of this month.Interest rates have increased so for those interested in the GRP lump sum option, it is advantageous to retire by 11/30.
Cuts are coming to most all companies. Governments all over the world printed up too much money and it looks like we are headed towards rough waters.
So, yes, be prepared.
LOL
"Your friend clearly does not understand leadership levels and how they provide direction to staff to keep the company moving forward." - Clearly...
ROFL
"Ford or any other large company would fall apart and wander in the market place aimlessly without solid leadership. Ford's is among the best in this regard." - Not sure what rock you are living under but this is exactly what's happening...you must not work there. In terms of wandering aimlessly without solid leadership....Ford is doing quite well in that regard if you are talking about doing exactly that...
Post ID: @1msw+1pGMVEOB
Your friend clearly does not understand leadership levels and how they provide direction to staff to keep the company moving forward.
Ford or any other large company would fall apart and wander in the market place aimlessly without solid leadership. Ford's is among the best in this regard. Go back and look what Bill Ford has said about the company's current executive leaders. This also flows down the LL ranks.
They are cutting spending by reducing headcount at the new battery plant in Marshall, MI. No head count will be axed right now.
“Farley told the media there has to be new efficiencies…”
There is an extremely high cost to political correctness.
@1wzp- great suggestions. When I told a friend that there are 6 levels of management for EACH department, she gasped and said "Why does each department need 6 levels of managers." Even an outsider can see where the problem is.
If you are older than 55 and have more than 20 years with the company you should have retired last year -if you are taking the pension lump sum. If you didn't, then you lump sum already went down 20 to 25%, this year it will drop another 7%. So you lump sum will drop a total of 40% since 2022.
Don't take the lump sum. Take the monthly pension payment then you are ok.
@sne+1pGMVEOB
"There was a retirement deal that was going to expire at end of the month"
Lump sums will decrease by 7-10% if you retire after December 1, so if you were planning to retire and take the lump sum in the next year or worried you might be be cut in the next round then it might make financial sense to retire December 1.
@1ewg+1pGMVEOB, if you do not see the coming cuts, you are wishful thinking.
Farley told the media there has to be new efficiencies, meaning cost cuts. Other than the current plans for factory automation and moving both production and salary engineering jobs to LLCs, I would suggest:
- cutting size of Board of Directors down to about 20.
- eliminating 70% of LLs, starting with all FnF plan people.
With those charges, Ford’s future could be brighter.
No.
I think all the automakers effected by the strike will cut.
There was a retirement deal that was going to expire at end of the month. My LL6 said he was going to lose a ton of he didn't take retirement this month. Most likely all it is.