Ford plans to slash about 10% of its global workforce
- Author: Zachary Reyes May 29, 2017,
May 29, 2017, 19:54
"Reducing costs and becoming as lean and efficient as possible also remain part of that work", it said in a statement.
The focus of the cost-cutting effort is on North America and Asia, people familiar with the plans said.
The move could put the USA automaker on a collision course with President Donald Trump, who has made boosting auto employment a top priority.
Ford shares are down almost 40 percent since Fields took the helm in July 2014. The company wants to boost profits and prop up its falling stock price.
Fields has said Ford will cut costs by about $3 billion this year and that earnings will rebound in 2018. The statement added that the company has not announced new people efficiency action nor does it comment on any speculation. In North America and Asia, targeted salaried employees will begin receiving buyout offers in early June, according to the company.
A Brazilian worker assembles a Ford vehicle on an assembly line at Sao Bernardo do Campo Ford plant, near Sao Paulo, August 13, 2013. Ford now has 200,000 employees across the globe, half work in North America.
Michelle Krebs, an analyst with AutoTrader, said Ford may be taking a prudent action to prepare for declining US industry sales.
Ford has around 200,000 employees worldwide, half of which are in the USA. The Ford family wants the stock to go up.
Ford has some 201,000 employees. Ford Motor Co.þÄôs net income fell 35 percent to $1.6 billion in the first quarter reported Thursday, April 27, 2017, as it was hit by costly recalls, lower sales and rising prices for steel and other materials.
It was unclear Monday night whether any potential cuts would affect any of the company's hourly workforce. Automakers have widespread shutdowns planned for the summer to adjust to the USA auto market's recent slowdown following seven years of gains, conflicting with Trump's more upbeat portrayal of the state of the industry.
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.