Ford to cut 10pc of global workforce, report says
- Author: Zachary Reyes May 24, 2017,
May 24, 2017, 11:55
Ford Motor Co is planning to shrink its workforce of salaried employees in both Asia and North America by as much as 10% in its attempt to boost its profits and its sliding price of stock, said sources familiar with its plans.
Ford plans to offer financial incentives to convince salaried employees to depart voluntarily, including generous early retirement offers, a person briefed on the plan said.
Ford's plans to possibly cut its global workforce was first reported by the Wall Street Journal.
Ford refused to confirm or deny the story, but said in a statement that it was focused on its plans to "drive profitable growth".
Ford has not specified the details of what it blandly calls "people efficiency actions", and has not responded to questions from industry journalists, although the company claims that any layoffs will be "voluntary", cited by Reuters.
The shake up is part of a plan announced earlier to slash costs by $3 billion, Reuters said. Ford now has 200,000 employees across the globe, half work in North America.
Despite consistent profitability amid near-record global automotive sales, the Dearborn, Mich. -based automaker said in a statement that it must focus on "becoming as lean and efficient as possible".
Ford plans to cut 10 per cent of its workforce across North America and Asia this summer, but most job cuts are expected to be voluntary.
Retrenching in the US risks reopening Ford to criticism from Trump.
Under pressure to cut costs, boost profits and to improve its stock price, Ford said it will announce its redundancies measures in the next few days. It expects to rake in 9 billion dollars this year, down 1.4 billion dollars from 2016.
In January, Ford also added 700 MI jobs, following criticism from Trump over plans to increase production in Mexico.
Trump posted on Twitter before Ford could release official plans: "Major investment to be made in three MI plants".
Since Mark Fields became Ford's chief executive in 2014, company shares have fallen by almost 40 percent.
General Motors Co has cut more than 4,000 U.S.jobs since November, and moved to conserve capital by shedding its European operations and closing unprofitable operations in Asia.
Ford says the positions to be cut include those in human resources and marketing, but exclude other types of skills such as product development, information technology and plant manufacturing.