DETROIT — Ford revealed details of its long-awaited restructuring plan Monday as it prepared for a future of electric and autonomous vehicles by parting ways with 7,000 white-collar workers worldwide, about 10% of its global salaried workforce.

The major revamp, which had been under way since last year, will save about $600 million per year by eliminating bureaucracy and increasing the number of workers reporting to each manager.

In the U.S. about 2,300 jobs will be cut through buyouts and layoffs, Ford said. About 1,500 have left voluntarily or with buyouts, while another 300 have already been laid off. About 500 workers will be let go starting this week, largely in and around the company’s headquarters in Dearborn, Michigan, just outside Detroit. All will get severance packages.

The layoffs are coming across a broad swath of the company including engineering, product development, marketing, information technology, logistics, finance and other areas. But the company also said it is hiring in some critical areas including those developing software and dealing with self-driving and electric vehicles.

In a memo to employees, Monday, CEO Jim Hackett said the fourth and final wave of the restructuring will start on Tuesday, with the majority of U.S. cuts being finished by May 24.

 

Judge rules against Trump in records dispute with Congress

WASHINGTON — A federal judge in Washington ruled Monday against President Donald Trump in a financial records dispute with Congress.

U.S. District Judge Amit Mehta, who was appointed by President Barack Obama, said Trump cannot block a House subpoena of financial records. He said the Democratic-led House committee seeking the information has said it believes the documents would help lawmakers consider strengthening ethics and disclosure laws, among other things.

The committee’s reasons were “valid legislative purposes,” Mehta said, and it was not for him “to question whether the Committee’s actions are truly motivated by political considerations.”

The decision comes amid a widespread effort by the White House and the president’s lawyers to refuse to cooperate with congressional requests for information and records.

In the case before Mehta, Trump and his business organization sued to block the subpoena issued in April to Mazars USA, an accountant for the president and Trump Organization. Trump’s lawyers accused Democrats of harassing Trump and said the subpoena “has no legitimate legislative purpose.”

 

Trump tells ex-counsel McGahn: Defy subpoena, don’t testify

WASHINGTON — President Donald Trump directed his former White House Counsel Don McGahn to defy a congressional subpoena Monday, citing a Justice Department legal opinion that maintains McGahn would have immunity from testifying about his work as a close Trump adviser.

Trump’s action, the latest in his efforts to block every congressional probe into him and his administration, is certain to deepen the open conflict between Democrats and the president. They’ve accused Trump and Attorney General William Barr of trying to stonewall and obstruct Congress’ oversight duties.

McGahn was a key figure in special counsel Robert Mueller’s investigation, describing ways in which the president sought to curtail that federal probe.

The House Judiciary Committee has issued a subpoena to compel McGahn to testify by Tuesday, and the committee’s chairman, Rep. Jerrold Nadler, D-N.Y., has threatened to hold McGahn in contempt of Congress if he doesn’t testify. Nadler has also suggested he may try and levy fines against witnesses who do not comply with committee requests.

 

FCC chairman backs T-Mobile-Sprint deal in key endorsement

NEW YORK — A key federal regulator says he backs T-Mobile’s $26.5 billion takeover of rival wireless carrier Sprint, a crucial step for the deal’s approval.

Federal Communications Commission Chairman Ajit Pai said Monday he supported the deal because the two companies promised to expand mobile internet access in rural areas and roll out 5G , the next generation of mobile networks.

While Pai’s backing is important, further steps remain. The full commission of three Republicans and two Democrats must still vote, and the Justice Department must also clear the deal. State attorneys general may also move against the combination.

Pai said Monday that the combination will help bring faster mobile broadband to rural Americans.

The companies have made promises on building out 5G and expanding rural broadband before, but now they are attaching timelines and agreeing to penalties if they fail to meet their commitments. For instance, the companies promise to make fast internet available to 99% of Americans within six years after the deal’s close.

T-Mobile US Inc. and Sprint Corp. also said Monday that they would sell Sprint’s prepaid cellphone brand Boost Mobile to address antitrust concerns.

 

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