Ford Motor Co. announced Monday it will cut its global salaried workforce by 10 percent and eliminate roughly 7,000 management jobs by the end of August, moves that will save the company about $600 million per year.

CEO James Hackett announced in a memo to employees, first reported by several media outlets that the company would cut its management structure by 20 percent as it adapts to economic challenges facing U.S. automakers.

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The majority of U.S. employees losing their jobs will be notified by May 24, while layoffs in Europe, China, South America and other countries will be completed by August, wrote Hackett.

Hackett said the layoffs are part of a broader effort to reduce bureaucracy and streamline decisionmaking as Ford adapts to several economic and industrial challenges.

In October, Ford announced it would cut up to 12 percent of its salaried staff as it sought to shed billions in costs. The company, like its rivals General Motors and Fiat Chrysler, is refocusing production toward light trucks, SUVs, electric and autonomous vehicles as sales for U.S. sedans plummeted throughout the past decade.

"Ford is undergoing an organizational redesign process helping us create a more dynamic, agile and empowered workforce, while becoming more fit as a business," the company said in a Monday statement.

"We understand this is a challenging time for our team, but these steps are necessary to position Ford for success today and yet preparing to thrive in the future.”

Ford has also felt the pinch of President Trump Donald John TrumpBiden on Trump's refusal to commit to peaceful transfer of power: 'What country are we in?' Romney: 'Unthinkable and unacceptable' to not commit to peaceful transition of power Two Louisville police officers shot amid Breonna Taylor grand jury protests MORE’s tariffs on imported steel, aluminum and Chinese goods, raising prices throughout its supply chain.

Trump struck a deal Friday with Canada and Mexico to lift tariffs on steel and aluminum, easing costs for a slew of U.S. manufacturers. But U.S. automakers could face brutal retribution from the European Union and Japan if Trump follows through with tariffs on imported automobiles.

Trump announced Friday he would hold off on auto tariffs for 180 days while the White House negotiated trade agreements with the European Union and Japan. The president may then decide to impose a 25 percent tax on foreign autos entering the U.S.

U.S. tariffs on foreign autos could cause intense economic pressure in Europe and Japan, where auto exports are a crucial portion of the economy. Both are set to respond with tariffs, potentially on U.S. autos, which could compound financial pressures facing Ford, GM and Fiat Chrysler.

Updated at 2:24 p.m.