Ford Motor Company plans to email employees on Tuesday details for severance packages with a goal of shedding at least 1,400 U.S. jobs by the end of 2020, and the Detroit Free Press, part of the USA TODAY Network, has obtained details of the offer.
The so-called “Voluntary Incentive Program” (VIP) provides a lump-sum cash severance payment for eligible employees who elect to, and are approved to, retire from the company, according to information obtained by the Free Press and confirmed by a source close to the situation who was not authorized to release the information.
The severance benefits:
- Up to seven full years of service: three months severance
- 8-15 full years of service: six months severance
- 16-plus full years of service: nine months
The incentive package does not provide post-employment continuation of medical or dental or vision coverage or life insurance. The company declined to discuss this element,