Sources Say Ford Will Cut 10% of Salaried Workers
- Author: Zachary Reyes May 25, 2017,
May 25, 2017, 4:58
The newswire's source said that Ford will achieve its goal by offering generous early retirement incentives, rather than cutting hourly workforce or production.
Ford's plans to cut jobs were first reported by The Wall Street Journal on Monday night.
The No. 2 USA automaker said it must focus on "becoming as lean and efficient as possible" as it announced job cuts that will affect 1,400 of about 15,000 salaried workers in its North America and Asia divisions and will be completed by October. "We have not revealed any new individuals efficiency actions, nor do we discuss about speculation".
According to commentators, the move could put the USA automaker on a collision course with president Donald Trump, who had made it a top priority to increase employment in the auto sector. With this in mind, it will be interesting to see how things unfold if Ford does indeed plan to cut 10 percent of its global workforce, as the layoffs will likely affect U.S.jobs as well.
Ford has been hiring steadily since the recession as US vehicle sales reached record highs. Electric auto maker Tesla Inc., led by Elon Musk and based in Palo Alto, recently surpassed Ford in market value even though Tesla sells far fewer vehicles.
Ford refused to confirm or deny the story, but said in a statement that it was focused on its plans to "drive profitable growth". The company said most skill teams in North American and Asia Pacific will be affected, with the exception of product development and Ford Credit, plant manufacturing, information technology and global data and analytics.
Ford fell 0.3 percent to $10.91 as of 12:06 p.m.in NY trading.
But the company is still moving ahead with plans announced past year to shift all small auto production to Mexico. Primarily, salaried workers in North America and Asia would be laid off, reported Reuters. Ford's share price has suffered during Fields's three-year tenure, and the company's market value has slipped far behind Tesla Inc. April saw Ford sell 214,695 vehicles, approximately 7.2 percent fewer than the same period one year earlier. "Car companies coming back to U.S. JOBS!"