Ford job cuts won't affect Louisville plants
- Author: Zachary Reyes May 23, 2017,
May 23, 2017, 17:43
The cuts represent 10 percent of Ford's salaried workforce in North America and Asia, and while 1,400 is a far cry from 20,000, it's still indicative of the economic predicament Ford is now facing.
In an email to BuzzFeed News, Democratic Congressman Brendan Boyle of Pennsylvania said job cuts will not make USA businesses competitive, and that "we must instead invest in quality, full-time, salaried workers if our nation is to keep manufacturing the best products in the world".
The auto maker will offer financial incentives to encourage salaried employees to depart voluntarily, including generous early retirement offers, a person briefed on the plan said.
A Ford spokesperson, who declined to comment on the reported layoffs, said in a statement that the company is focused on "strategic priorities that will create value and drive profitable growth", including investing "aggressively, but prudently" in new opportunities.
Ford Motor said Wednesday it would cut its salaried workforce in North America and Asia by almost 10% as it seeks to boost profitability amid a falling stock price.
Employees in neither South America nor Europe are included in this announcement, Moran said, because they "already have completed people actions or have them under way". The Middle East and Africa was spared because it's a new, emerging business unit, Ford said.
Mr. Fields has pledged to take more decisive action, telling Wall Street analysts last week that the company will improve communications to demonstrate resilience in its core automotive business.
Ford's stock price has fallen almost 40 percent over the last three years as investors worry that US sales are peaking.
About 600 Ford Motor Co. of Canada Ltd. salaried employees are eligible for the voluntary package, Ford spokesman Mike Moran said from the company's headquarters in Dearborn, Mich.
Blessed with the best-selling vehicle in the US, the enormously profitable F-series pickup truck, which would be a Fortune 500 company on its own, Ford remains endowed with strong financials. Ford canceled its Mexico plant in January, opting instead to add 700 workers to a suburban Detroit plant in 2018 to make electric and self-driving vehicles. It also said earlier this year that it would add or keep 130 jobs at its Romeo Engine plant.
Ford stock opened today at $10.90 per share, a 52-week low.