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Car giant Ford is cutting about 7,000 white-collar jobs, about 10 per cent of its global workforce.

The company has said it was undertaking a major restructuring and on Monday, said it will have trimmed thousands of jobs by August.

The company said the plan will save about $US600 million ($A868 million) a year by eliminating bureaucracy and increasing the number of workers reporting to each manager.

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

“To succeed in our competitive industry, and position Ford to win in a fast-charging future, we must reduce bureaucracy, empower managers, speed decision-making and focus on the most valuable work, and cost cuts,” Hackett wrote.

In the US, about 2,300 jobs will be cut through buy-outs and lay-offs.

About 1,500 white-collar employees left the US company voluntarily since the restructuring began last year, some taking buy-outs.

About 300 have been laid off already, with another 500 lay-offs starting this week.

Most of Ford’s white-collar workers are in and around the company’s Dearborn, Michigan, headquarters.

Hackett said in the memo the company is departing from past practices and letting laid-off employees stay a few days to wrap up their jobs and say goodbye to colleagues. In the past, laid-off workers would have had to pack up and leave immediately.

“Ford is a family company and saying goodbye to colleagues is difficult and emotional,” Hackett wrote.