Ford Motor Credit, the lending and financing arm of
, will cut about 20% of its U.S. staff, or about 1,200 jobs, as part of a restructuring plan announced during meetings with employees Wednesday, according to reports.
The move comes about because of a decline in sales as well as the sale of Jaguar and Land Rover to India's
, said Ford Motor Credit spokeswoman Margaret Mellott, reports the
Detroit Free Press
"When Ford sold those brands, we began transitioning the financial services part of that business to new providers," Mellott said, according to the newspaper. "Ford Credit is restructuring its U.S. operations. This will help us meet the changing business conditions."
reports the jobs will be eliminated by the end of July.
More details will be shared Thursday when Ford and the finance unit release fourth-quarter and full-year earnings reports.
The Ford Credit job cuts will begin in mid-February, Mellott said,
reports. The jobs reduction will be achieved primarily through involuntary layoffs and include some planned attrition and retirement. Ford Credit's headquarters in suburban Detroit, regional business centers and field staff will be affected.
announced Monday it planned to cut 2,000 jobs at plants in Michigan and Ohio, and slow production at nine other plants.
This article was written by a staff member of TheStreet.com.