Ford is cutting 1400 non-factory jobs in North America and Asia
- Author: Zachary Reyes May 18, 2017,
May 18, 2017, 10:51
Ford Motor Co.is planning substantial job cuts to boost profits and raise its stock price, according to the Wall Street Journal.
The company plans to offer enticing retirement packages to salaried employees to reduce overall headcount, Reuters reports.
According to the publication, Ford could announce the layoffs as soon as this week and the job cuts will likely target mainly salaried workers.
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 did not break down how many jobs might be cut in the USA and in MI.
Automakers are also investing heavily in self-driving cars and other new technology.
Trump, in January, tried to take credit when Ford announced it was canceling a second Mexican plant. Factory workers and white-collar employees in Ford's plants won't be affected. The company has 200,000 employees globally, half work in the U.S. The president has repeatedly roasted companies for planning to move jobs overseas, or make substantive cuts to their USA workforce.
Chief executive officer Mark Fields also wants to arrest the slide in the United States vehicle company's share price. The 114-year-old automaker has also embarked on a massive, 10-year plan to remake its Dearborn campus to attract tech-savvy young workers.
Ford has been hiring steadily since the recession as US vehicle sales roared back to reach record highs. In trading Wednesday, it was down 1.3% at $10.79.
The cuts are part of a previously announced plan to slash costs by $3 billion, the person said, as US new vehicles auto sales have shown signs of decline after seven years of consecutive growth since the end of the Great Recession. It expects to rake in 9 billion dollars this year, down 1.4 billion dollars from 2016.
Fields is facing sharp questioning of his strategy with Ford's shares having fallen about 36 percent since he replaced Alan Mulally, who steered the company through the global financial crisis without a government bailout.
First-quarter adjusted earnings at Ford fell 42 percent, while GM has said it remains on track for another record annual profit. If you would like to discuss another topic, look for a relevant article.