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Letter to the Editor

Ford Eliminates Up to 5,000 Jobs; Says 2001 Earnings Will Fall Short of Expectations

DETROIT -- Ford Motor Co. is slashing up to 5,000 white-collar jobs in North America and said that its 2001 earnings will fall short of Wall Street's expectations.

Ford will also unveil a more extensive restructuring plan at the end of the year, according to chief financial officer Martin Inglis.

Ford stock plunged 8 percent on the news. Shares of rivals General Motors Corp. and DaimlerChrysler AG also fell.

The Ford cuts will come about mainly through early retirement and buyout packages offered certain employees. They represent about 10 percent of Ford's North American salaried work force of approximately 50,000. About 200 of the cuts will take place in Canada.

The moves follow closely on Ford's management shake-up that included chairman William Clay Ford Jr. taking a more active role in running the automaker and placing Nick Scheele in charge of North American operations.

Once thought to be in a position to overtake General Motors as the world's leading automaker, Number Two Ford's fortune was reversed one year ago with the recall of 6.5 million Firestone tires, many of which were installed as original equipment on its popular Ford Explorers.

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