Published: Fri, May 19, 2017
Business | By Max Garcia

Ford Motor to cut 10 per cent of salaried workforce

Ford Motor to cut 10 per cent of salaried workforce

Ford has 200,000 employees globally, half of whom work in North America. Forecasts for 2017 predict that Ford will finish the year in a similar position to last year, when the automaker reported its second-best pre-tax profits in the company's history.

Ford Motor Co F.N said on Wednesday it plans to cut 1,400 salaried jobs in North America and Asia through voluntary early retirement and other financial incentives as the No. 2 USA automaker looks to boost its sagging stock price.

What's more, the USA auto market, where Ford makes the bulk of its profit, appears to have peaked in 2016, meaning Ford must find other areas to bolster the bottom line.

Ford said the cuts would amount to about 10 per cent of a group of 15,000 salaried workers.

About 1,400 people will be affected, according to information provided May 18 by Mike Moran of Ford's Global News department. The second-largest automaker has also been trying to boost its stock price, which has tumbled about 40 percent since Mark Fields became CEO almost three years ago.

The job cuts are expected to be outlined as early as this week and mostly target salaried employees.

Unfinished buldings remain in the site of a called off Ford auto factory in Villa de Reyes, near San Luis Potosi, Mexico.

The cuts are part of a previously announced plan to cut costs by $3 billion in 2017, a move that Ford hopes will improve profitability in 2018 as US new auto sales level off after years of consecutive growth.

Ford Motor Co confirmed Wednesday that it plans to reduce 10% of its salaried workforce in its North America and Asia Pacific divisions this year. If you would like to discuss another topic, look for a relevant article.

The decision would come on the heels of a quarter, identified as one of the toughest by CFO Bob Shanks - profit was down by more than a third compared to the year-ago quarter, primarily due to the launch of new F-150 back then.

Ford recently announced it would add 700 manufacturing jobs in Flat Rock as part of an investment to build autonomous and electrified vehicles there.

Ford didn't confirm the report Monday night. It expects to rake in 9 billion dollars this year, down 1.4 billion dollars from 2016.

Like this: