Ford, American Axle Plan Job Cuts

Ford Motor Co. plans to lay off up to 12% of its salaried employees by August as part of a restructuring in the face of slumping sales and high fuel prices, the Associated Press reported Wednesday.

The Detroit News reported that some employees were told that the automaker plans to cut its salaried work force by up to 12% of its workforce, or more than 2,000 workers.

Meanwhile, auto parts supplier American Axle and Manufacturing Holdings said Wednesday it will cut its U.S. hourly work force by 2,000, or about 55%, AP said.

Those cuts came about as a result of a new contract ratified last week American Axle and the United Auto Workers union, following a three-month strike.

American Axle said its total hourly labor costs would drop from $73.48 before the new contract to between $30 and $45, AP reported.