Ford to Cut One in Ten Salaried Workers in North America, Asia
May 20 2017 by Larry Hoffman
Ford Motor Co. said Wednesday it aims to reduce its salaried workforce in North America and Asia by 10%, a cost-cutting move aimed at shoring up profits amid cooling sales in the once-booming USA and Chinese auto markets.
The Dearborn automaker Ford said workers eligible for a voluntary reduction program, will be offered early retirement and special separation packages through the end of September. The cuts are said to largely target salaried employees.
Ford Motor Co. said it's making an "accelerated attack on costs" by offering voluntary buyout packages to salaried workers in North America and Asia, as Chief Executive Officer Mark Fields faces pressure to improve profit and boost the carmaker's stock price. Ford's share price has fallen almost 40 percent over the past three years.
Ford will cut up to 10 per cent of its global workforce in an effort to cut $3 billion in costs in the midst of falling vehicle sales and increased spending on advanced technologies.
Certain areas of the business won't be targeted, including Ford's product development and credit divisions.
General Motors Co GM.N 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 also isn't likely to cut jobs in its emerging businesses, such as its research center in Palo Alto, California.
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She mentioned her grandparents who survived the Holocaust, and also how her father, Charles Kushner, founded the company in 1985. Similar events will be held at the InterContinental in Shenzhen on May 13 and the Four Seasons in Guangzhou on May 14, it said.
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But investors are clearly anxious that sales in the U.S., Ford's biggest market, are peaking. The company wants to boost profits and prop up its falling stock price.
Earlier this year, the niche electric vehicle company Tesla passed both Ford and GM in market value, despite having a small fraction of either company's sales.
Ford Motor Co. has said that it wants to reduce costs by $7 billion in 2017 in order to increase profitability next year as US auto sales are expected to stagnate.
Ford's shares dropped 2 percent to $10.72 in afternoon trading.
During the company's annual meeting last week, Ford Chairman Bill Ford was asked about the company's slumping stock, which is hovering near a five-year low.
The president has repeatedly roasted companies for planning to move jobs overseas, or make substantive cuts to their US workforce.