Ford cuts 1400 jobs, 10 pct of white-collar work force

Someone briefed on Ford's plan said the automaker would offer generous incentives for early retirement to lower its current salaried workforce by October 1, but is not planning to make any cuts to hourly workers or in production.

It added: "Reducing costs and becoming as lean and efficient as possible also remain part of that work". The automaker's product development unit and Ford Credit will be spared, as will operations in Europe and South America, which have already cut staff, and Africa and the Middle East, where Ford is trying to grow.

"Full details about the voluntary packages and how the program will work will be communicated with employees in early June". Ford's stock price has fallen almost 40 percent over the last three years.

Ford won praise from Trump when it announced in early January that it was scrapping plans for a plant in Mexico and would invest $700 million in a MI plant to build electric and self-driving cars.

In an email to employees, Ford said it wants to strengthen its core business and invest aggressively in new opportunities.

General Motors Co has cut more than 4,000 since November, and moved to conserve capital by shedding its European operations and closing unprofitable operations in Asia.

Ford stock closed Monday at $10.94 a share, up 2 cents.

The No. 2 US auto maker is also facing weaker profits in Asia-Pacific, where softer sales and intensifying price competition in China are dinging profits for the region.

Auto sales fell in March and April, with Ford falling 7.2% in year-over-year sales.

Declining to comment on any job cuts, Ford said it remained focused on its core strategies to "drive profitable growth".

Last week, during the company's annual meeting, a number of shareholders pressed Ford's management about the company's stock price, which has dropped 17% since January to $10.94 per share. As of mid-morning, Ford shares were off by more than 1 percent, to around $10.83, continuing a almost two-week slide.

Interestingly, while the management has been put under extreme pressure to improve the profitability and stem the continued decline in the stock price, the company insiders mostly sold shares over the past year.

It is unclear if the prospective job cuts will include hourly workers, and the job reduction plan could be complicated by pressure from President Donald Trump to increase hiring in USA manufacturing sector.

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