Thread regarding Ford layoffs

A clarification of a previous poster's comment. The mass exodus of retirements will not come prior to the August reset of rates. While August rates are used, the lump sum adjustment is on a calendar year basis. The exodus will be Sept-Nov if interest rate projections hold. 2% merits, and 5k bonus will not provide incentive to stay. Despite reductions in recent years, the company still has many LL6S and SMEs in key roles that are retirement eligible. The company is not prepared to take this hit. While the trend is to move away from ICE, the company still depends on those vehicles for revenue. Younger employees have no interest in working on products slated for extinction. If you are working on a legacy product, by this time next year you might be begging to get laid off.

Why is there an uproar only about the LL5?
My brother’s AICP has a multiplier so that he gets 108 AICP. He is a GSR. We both write code, just have different reporting structures. Where is the transparency about that? Ford values some work groups more than others. I am truly happy for my brother.
Clear message for all the 54 AICP, you are expendable. But hey please train your F of I replacement before Ford shows you the door. No matter how Kumar tries to walk it back, the Message was received loud and clear.

This will be for next year. AICP for 2021 is done and in the books.

My guess is that they’ll increase the GSR/LL6 AICP to at least 100 percent. That is the minimum for them to save face and will make most of us happy enough to avoid further public backlash. Anything less than this will risk further and sustained backlash.

What they should do is increase the GSR/LL6 to the same level as LL5+. The working level should never be rewarded at a lower percentage than the leaders who cascade their objectives to them (percentage wise). If our bosses did such a great job that they should be rewarded above and beyond the base bonus, how is it possible for their teams who supported them to be considered any less successful?

Agree with others that reducing the actual AICP to leadership won’t happen. They might attempt to create an illusion of reducing leadership AICP, presently they have a problem with leaks though. Expect multiple freep articles about how much F cares about addressing pay inequities, with no tangible changes.

As others have stated those planning to retire and take the lump sum need to watch the interest rates as the lump sums will decline as interest rates rise.
I would caution people to carefully work through their monthly expenses and how they will generate an “income stream” to cover their monthly expenses. A number of people who retired last year failed to consider their monthly income needs, and are now looking for other jobs until they can take social security. Lucky for them that it is a good job market.

I'm glad everybody is chiming in but let me level set this just a bit with a few thoughts.

@1jgh+1fgSqWtW

Let me make sure I have this straight. You think they're going to lower the LL5+ 135% to redistribute it to the GSR's/LL6's???? Let's just suppose (picture Fire Marshall Bill saying this) that I'm an LL5+, and I see a meeting notice on my calendar to the effect of "Update to AICP Payout." I attend the meeting only to learn I will now be getting only 100% or less to redistribute the save to the GSR/LL6 population after I had been told last week I will be getting 135%. And oh by the way I'm probably pi---d off even at that level when I learned GM got 200%.

I DON'T THINK SO! Do we honestly think they would risk pi----g off the rest of the population much more closer to them to achieve a nickel's worth of save in light of the 2021 billions in operating and Rivian stock sale profits? Now everybody would be pi---d off in support of the make up for cheating scenario below. I whole heartedly agree the damage has been done, people.

No need for another SRD this year/voluntary because there will be a mass exodus of retirements just prior to the August reset of rates. The 10 year is already at 2%+ and could very well be at 3% in August if the Fed over indexes on rate hikes, which is a very real possibility. The difference between 1% and 3% in a lump sum calculation is beyond substantial, even for a GSR8, and could add several months to essentially working for free. There is your zero cost voluntary to Ford, which they could use to fund our grossly underfunded AICP.

To the last commenter. I don't think you are necessarily wrong. But, I do think they underestimated the angst at the 54% AICP and didn't anticipate the 135% for LL5+ going public.

While they do want to lower NA headcount and replace with over seas headcount, they cannot afford to lose a huge chunk all at once. There are still vehicle launches and new features being developed, and without the people to do that they are screwed. Yes there is always 5-10% bloat, but they certainly didn't want to lose 20-30% in the next few months. Nor did they want to see a salaried union effort.

So we got Kumar's email this morning to stem that tide. We'll see what they do next. I don't expect a change to the 54%. I do see an announced lowering of the 135%. They'll make it up to the LL5+ in other ways, I'm sure. I could see them lowering it to 54% and making up the rest with company stock.

Regardless, I think another commenter is right, they'll bank on everyone forgetting this in a few months. I think that that commenter and management are wrong to think that. This time is different. This time is personal. I think you're going to see a lot of thing slip and miss dates over this.

I know that nobody is happy with the bonus situation, and I am not either and I agree with you. However, upset as we all can be, this is probably just all part of a bigger plan by Jimmy, Billy, and the rest of the leadership team. This is all by design. They don't want us anymore - get used to it (at least until the hammer they are swinging stops it's direction). Nothing that is said or done is going to change the grand plan they already have for everyone. That plan is they intend to get rid of many more people over the next months; possibly few years. From their perspective (whether we agree with that perspective or not); what better way to downsize (and save them money) than to continue to give incentives for people to leave on their own before they start forced downsizing and have to pay severances, etc., plus the hassles and costs of related lawsuits. I don't expect anyone to like this message I am delivering. I don't like it either. My only motive is to get everyone thinking that this is the new normal (actually not that new either), but at least the normal from now on, until they get rid of all the headcount they want to get rid of. And yes, they will probably replace the headcount with non US employees. They will do whatever they can do to make a buck. It has been the Ford way for decades. It is just now affecting all of us negatively instead of just our suppliers, contract/agency people, and previous Ford employees (think the previous SRD and the Visteon fiasco). For your own health/personal finances, it is better to accept this now and come up with a plan B, than to live with the hope that Ford management personnel are going to see the light and change their ways. I can't tell you what YOUR plan B should be. Some may plan to leave; others may start only working 54%, others may stop training new employees, others may get new skills for a totally new career, etc. It is possibly different for everyone. But please consider a plan B for this scenario. If it is wrong you don't lose anything (because right now - we already are). But if it is right - hopefully you will be happier and in a better position to handle it. But continually thinking that Kumar, Jimmy, Billy, or ANY of the management team are going to see the light and start being leaders, role models, etc. is just a fools errand.

You are a bunch of socialist mo--ns, 54% is better than nothing if people do not like it they can pack their stuff and leave. Ford needs to pay the UAW their 7K and the upper mgmt for their sacrifices in the last two years. Billy needs to keep happy Wall Street otherwise his family business goes in the ho-e competing with Tesla and other super lean EV manufacturers.
If GRS are unhappy then it is their time to go, By the way there are another round of layoffs starting in March. Kumar is a discipline of Mullaly and Fields, why pay money to those who are not needed. Kumar is a genius, some lips service to the masses and a meager adjustment to 65% and bingo, everybody will be happy. Come on guys, all LL+ are a bunch of whimps. Specially all smelly inverted deltas in position of leadership. For those who still have a job, keep it, be quiet no fuss, dig it and if you see a chance to jump somewhere else Good Luck

Folks, this will all be swept under the rug in a very short time. Jim and Kumar will come out with some "we hear your concerns and will take action to see that this does not happen again in the future" speech. Some of the people will be satisfied with this explanation and everyday life at Ford will go on. The GSR's and LL-6's will forget about it after a month or 2 and Jim and Kumar will congratulate each other on how they defused a tricky situation. As a recent retiree, take my word for it, the company does not give 1 flying hoot about you or what you think.

Why don't they give the LL6 and below 150% minimum and do 0% and focus groups for the LL6+ ?

Has anyone informed Scott Adams from 'Dilbert' fame this bonus blunder saga with Ford's management and HR department?? Could be basis for some comedy gold.

Ford reported an operating profit of $10 billion for FY21
My best estimate is that paying out 100% vs 54% to the GSRs/LL6 would cost maybe another $160m. Seems like that would have been money well spent to maintain moral and retain critical staff. Especially when we already have 170+ openings for engineers.
Our cross town rival paid out 200% and they are hiring. Though I have serious doubts that they want to poach any of our LL5+ team.
Someone needs to have a hard look at these metrics. I consider a bonus a share of the profits generated by our hard working GSR staff. To say to us, "yes, we made 5 boatloads of cash, but the target was 10", then give a 50% bonus, then I ask, who set that unattainable target? The GSRs sure didn't have any say in this target, but the C-suite sure did.
Ford paid $400m in q4 dividends to shareholders. I'm not sure what value they contributed to our operations.

Do not go to the Focus group. It won’t be anonymous. You will be retaliated against. Also, management should be given 0% bonus instead of 135% since their subordinates got a 54%. They failed as management. They are completely inept.

There is no competent leadership at Ford at present. No leader would have ever allowed this disaster to go forward. The people doing the work come first. If you have to give them something as abysmal as 54%, you make sure the leadership gets the same or even less. THAT’S LEADERSHIP!

Farley was a terrible choice. Bill Ford has never known what he was doing. His one moment of genius was going with Mullally. Henry Ford built the foundation of this company by paying the workers he depended on good wages for their efforts. The current regime is working hard to destroy that legacy.

I predict an email from my LL4 to Kumar and HR on monday will go something like this:

Kumar and HR:

I am very disappointed in the saturday morning email you sent to my subordinates. I had big plans already made and allocated for my 135% AICP. Please reconsider or at very least, postpone any AICP changes to next year.

Signed,

A concerned LL4

@ruj+1fgSqWtW Speaks the truth about focus groups.
If at all possible do NOT attend.
If you are forced to go do NOT say anything.
There is a desired result for the focus group, that will be the result no matter what.
There are designated people in the group to steer the result, and to document dissenters.
If you have not been contracted pre-focus group with regard to your focus group role and the desired result, rest assured you are one of the patsies. Don’t fall for the “everything said in this group stays in this group, and the let’s brainstorm all ideas are welcome”

@efl+1ffu28qN -
"I happened to eavesdrop on a LL5 and LL4. I am almost sure I heard "that's over I think, the rest are happy to bend over".
I don't know what context this was in but my hunch is it was about people fleeing Ford. But I also think, if that was the case, they would have stopped talking when they heard me entering, right?. I don't know. But just wanted to put it out there."

I actually do believe that the company was confident that there would be zero backlash to the 54%. I believe the LL5+ do think that whoever wanted to/could, has already left Ford. The rest have their ba--s in the vice with the sc--w handle in management hands. As for me, I have just put a post-it in front of me that reads "Xxxxxx, if you cant leave Ford within 6 months, you are an id_iot. You know you are not" :)

BTW - just wanted to say this as a good Samaritan. If there are any focus groups, do not.........well, let me emphasize it, DO NOT attend them and if you do, DO NOT say anything against the company. There will be serious repercussions.

Not enough...damage is done. They could increase it to 300% and it will not change the fact that I lost respect in our upper mgt, or leaders. They failed us. Too bad. I used to be proud to work for Ford. Not anymore. We were crapped on. Changing he AICP now is like an unfaithful spouse coming home with a gift to make up for the transgression, It doesn't work. It should have never happened in the first place. It's all smoke and mirrors to get through it this time. The respect won't come back. Sad, but it's clear, Ford proved they no longer value the LL6 and GSR employees. If they did, this never would have happened.

They are supposed to lead by example and motivate. They are supposed to give clear direction and e in, do my job and then go home an forget

We'll see. I'm skeptical that anything short of a token "this will be corrected in the future" smoke and mirrors messaging. Farley will read a script to us next meeting about how he understands our concerns and they will improve for the future. Meantime LL5s will get their $50k, LL4s their $100k, LL3s their $200k, etc bonuses. And laugh all the way to the bank.

Meantime, Bill later this year will brag about Most Trusted Company status, and buying company stock at 50% the going rate.

Tone deaf? How about tone deaf, blind, and d-mb. (Though those terms will get you additional DEI training!)

At some point you have to decide whether you are spending more time, effort and money on repairs than the vehicle (or company) is worth.
It is hard to make that decision after investing energy into a company, but look at the cost of opportunities lost, and the compounding of salary loss over your career/working life.

Don’t become that bitter old man that Ford never valued who at age 62 is bitter and resentful that in 40 years at Ford he was never valued or promoted to LL6.
This is a common story, reaching for a dangling carrot for 20 years, then for the next 20 years sticking it to Ford by coasting at work, and telling everyone they will start working once they are given an LL6 promotion.
If they left Ford 20 years ago or even sooner they would be far better off.

The 1st step to fix this problem must re-do 2021AICP.

Assuming the leadership team was aware of this, what concerns me the most is either they didn't recognize that this would be an issue or those that did were hesitant to speak up about it. Kumar's initial response was very weak and the email wasn't much stronger. A real leader would have said something to the effect of 'this is just wrong, and we are going to fix it'. After all, the AICP was modified last year, so it is not outside the realm of possibility.

Amazing that they would not anticipate the response before they announced. Is it being tone deaf or incompetent. It's door #2 in my humble opinion.

what is fair. 2.0 percent merits with 8 percent inflation?

This is how tone deaf they truly are all the way up to Billy. The last couple years for lack of a better term sucked, employee churn is high (they know this), and then they toss out the 54%. They clearly do not understand the cause and effect relationship.

100 FordPass reward points for all.

I do not have much faith in this leadership team but we will see if they do the right thing.

Cue the circus music.