Ford to Cut Around 10% of Its Global Workforce: Report (F)

FILE Ford Motor Co. assembly workers listen during a news conference at an assembly plant in Flat Rock Michigan

FILE Ford Motor Co. assembly workers listen during a news conference at an assembly plant in Flat Rock Michigan

Ford has 200,000 employees globally, half of whom work in North America.

Media reports about Ford's job cut program emerged earlier this week but were not confirmed by the automaker until today.

A person briefed on the plan said Ford plans to offer generous early retirement incentives to reduce its salaried headcount by October 1, but does not plan cuts to its hourly workforce or its production.

Ford Motor Co F.N said on Wednesday it plans to cut 1,400 salaried jobs in North America and Asia through voluntary early retirement and other financial incentives as the No. 2 USA automaker looks to boost its sagging stock price.

None of the job cuts are expected to come from plant manufacturing, information technology, product development, credit department or analytics.

"We expect 1,400 salaried positions to be affected and for people to depart by the end of September", Ford said in a statement. Ford stock closed Monday at $10.94 a share, up 2 cents. But Ford said it hasn't announced any job cuts and won't comment on speculation.

Since Mark Fields became Ford's chief executive in 2014, company shares have fallen by almost 40 percent. Primarily, salaried workers in North America and Asia would be laid off, reported Reuters.

Job cuts form part of Ford's previously announced strategy to generate $3 billion in cost reductions, a target that the company's management team believes is necessary to boost profitability in the face of flagging sales in the world's two largest auto markets, the US and China. Ford also plans to have self-driving cars on the streets by 2021.

The automaker even committed to ditching plans to build a factory in Mexico that had been under construction after the president criticized it, and instead announced it would add 700 jobs in MI.

Ford announced the $3 billion cost cutting goal at the same time it reported sharply lower first quarter earnings. "Car companies coming back to U.S. JOBS!"

Ford is pouring billions into developing driverless cars, while sales of its conventional models are struggling to keep pace with rivals including General Motors Co. amid a slowing US auto market. Electric auto maker Tesla Inc. surpassed Ford in market value, CBS News reports.

Ford is striving to become "as lean and efficient as possible" and targeting a 10 percent reduction of salary costs and staffing in North America and Asia Pacific, the spokesman added.

The company projects a $9 billion pre-tax profit in 2017, compared to $10.4 billion in 2016.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.