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Ford Sued Over Alleged 'Soft Layoffs' Using Performance Ratings to Cut Jobs
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Storyboard•30-09-2026, 16:02
Ford Sued Over Alleged 'Soft Layoffs' Using Performance Ratings to Cut Jobs
- •A federal lawsuit alleges Ford Motor Company used a forced-ranking performance system to implement "soft" or "stealth" layoffs, disproportionately affecting older employees and those nearing retirement.
- •The complaint, filed in the US District Court for the Eastern District of Michigan, claims Ford's revised 2024 performance management framework included forced ranking and rating quotas.
- •A 57-year-old former Ford employee, with 28 years of service and two years from retirement benefits, alleges she was terminated without cause despite a strong performance record.
- •The lawsuit claims HR instructed senior leaders to ensure every salaried employee received at least one "inconsistent" performance rating, with quotas requiring 30% of employees to receive the lowest ratings.
- •The former employee also raised claims under the Americans with Disabilities Act, Age Discrimination in Employment Act, and Employee Retirement Income Security Act, alleging her association with a disabled family member contributed to her termination.
Key Questions Answered
A federal lawsuit filed against Ford alleges the company used a forced-ranking performance system to conduct stealth layoffs, which disproportionately impacted older workers and employees near retirement.
The complaint was filed on September 28 in the US District Court for the Eastern District of Michigan.
The former employee alleges age discrimination under the ADEA, violations of the Employee Retirement Income Security Act, and a claim under the Americans with Disabilities Act regarding her husband's medical condition.
