Ford offers severance to underperforming corporate employees

Ford offers severance to underperforming corporate employees

Internal email says certain staffers will face a choice of taking the package or enrolling in an improvement plan

Ford Motor Co. is offering severance packages to some white-collar employees deemed underperformers, as part of broader changes to its talent-management policies for U.S. salaried workers, according to an internal email reviewed by The Wall Street Journal.

The effort focuses on employees who have eight or more years of service and whom the company has identified as demonstrating a pattern of declining performance, according to the email, which was sent to all U.S. managers.

These employees now have the option of taking the severance, rather than enroll in a performance-enhancement plan, which can take four to six weeks, the Oct. 4 email said and a company F, +0.83% spokeswoman confirmed. Those who choose the enhancement plan but fail to improve won’t be eligible for any severance, according to the email.

The amended policies went into effect Oct. 1, according to the email.

As part of the updated policy, managers who have low-performing employees with less than eight years can skip the performance-enhancement plan and move to an involuntary separation with severance, the Ford spokeswoman said. These employees can also receive some benefits, such as job-placement assistance, if they are let go, she said.

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