Ford plans to cut 1400 salaried jobs in North America, Asia
- Author: Zachary Reyes May 18, 2017,
May 18, 2017, 12:07
Ford plans to reduce 10% of its salaried costs and personnel levels in North America and Asia Pacific using voluntary packages, including early retirement.
Estimates put Ford's global headcount at around 200,000 employees, half of which are located in the United States alone, but only 30,000 of those are classed as "salaried" workers with the remainder employed on a casual basis.
It added: "Reducing costs and becoming as lean and efficient as possible also remain part of that work".
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.
The company's share price has fallen by almost 40% since Mr Fields took up his role in the middle of 2014.
Investors have been indifferent to Fields' plan to pour billions into new technologies like driverless cars and robo-taxis to take on upstarts like Uber Technologies Inc and Waymo, Alphabet Inc's self-driving spin-off.
Announcing employee layoffs that are projected to include up to 10 percent of the company's total workforce, the beleaguered automaker is seeking to turn its ailing stock prices and company value around.
Ford said in January it was cancelling a planned Mexico plant and adding 700 jobs in MI. Morgan Stanley analyst Adam Jonas says Ford should consider exiting unprofitable vehicle lines, like small cars, or markets, like India.
Ford has about 15,000 salaried employees on the skill teams affected by the buyouts, a Ford spokesman said.
The cuts belong to a formerly announced strategy to cut expenses by $3 billion, the person stated, as US new automobile sales have revealed signs of decline after seven years of successive development since the end of the Great Recession.
Ford, in an official statement, did not confirm it is slashing jobs.
Ford's global headcount sits at some 200,000 employees, so 10 percent comes out to about 20,000 potentially lost jobs. Ford Executive Chairman Bill Ford told investors at the company's annual meeting last week that he's frustrated by that decline. If you would like to discuss another topic, look for a relevant article.
A source close to the plan said that the cuts, which are part of a $3 billion (around Rs 18,951 crore) cost-cutting scheme, aims to maximise its profits and correct a fall in its stock price.