Mood turns on layoffs at Ford Motor Co.

DEARBORN, Mich., May 29 (UPI) -- Ford Motor Co.'s plans to cut up to 12 percent of its salaried staff by August has soured the mood at the Dearborn, Mich., automakers' offices, employees said.

In the middle of a comeback, Ford has been caught short by rising fuel costs that have buyers scampering for smaller cars, as large car and truck sales which come with larger profit margins, have dwindled.

"A month ago, everybody was feeling pretty good. Now, there's a lot of disappointment," one staff member told The Detroit News. "They're not treating us like the hourly people. It leaves a bad taste in your mouth."

"We hit the wall, I guess," another staff member said. "What makes it so scary is that it's not like there's a whole lot of places to go look for new work."

Company spokesman Mark Truby said severance packages based on years of work at the company would be in effect for involuntary layoffs, but the company would not confirm precisely how many employees would be cut, the News reported Thursday.