Ford cuts £190m from IT budget


Ford cuts £190m from IT budget

Ford is slashing its IT budget by $300m (£190m), as part of ongoing cost-cutting efforts.

The 20% cut, part of auto giant's $9 billion restructuring announced in January 2002, was in line with the company's decision to attack costs across all lines of the business. "We're looking at everything," a spokesman said. "We're not just targeting IT."

Ford is now evaluating exactly which projects would be affected by the cuts, and he said some of the company's 2,800 contract IT workers could lose their jobs. Ford currently employs approximately 6,000 IT workers globally.

In the autumn of 2001, Ford began converting many of its contract IT positions to full-time jobs under an initiative dubbed Project Renaissance. At that time, the company's IT ranks included approximately 6,800 workers, only about 30% of whom were full-time staffers.

By reducing the fees paid to consulting firms for contract workers, Ford expected to reduce its IT costs considerably without significantly cutting the number of workers.

Email Alerts

Register now to receive IT-related news, guides and more, delivered to your inbox.
By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

COMMENTS powered by Disqus  //  Commenting policy