Human Resources: Ford to slash 25,000 jobs

It is expected that Ford Motor Company, will very soon announce plans to cut 25 000 jobs and close several plants. In the first nine months of last year, Ford's North American unit recorded a $1.4 billion loss and Standards & Poor's has warned that the unit's pre-tax losses could reach $2 billion for the year.

Analysts however, doubt that shedding human capital will be enough to make the company profitable. Business Report, reports that savings from job cuts are limited by Ford's contract with its main union. Hourly employees who don't take early retirement packages enter the jobs bank retraining program in which they collect full pay and benefits while waiting for a spot to open up on the assembly line.