Finance

Ford to slash 10 percent of workforce

Ford to slash 10 percent of workforce

About half of Ford's employees live in America.

The functions that are impacted include: Communication, corporate staffing, finance, government affairs, marketing, purchasing and sales.

Ford Motor plans to cut its salaried workforce in North America and Asia by about 10 per cent of its 200,000-person global workforce to boost profits and its falling stock price, a source familiar with the plan told Reuters yesterday.

Ford announced the $3 billion cost cutting goal at the same time it reported sharply lower first quarter earnings.

News has come to light that Ford (NYSE:F) is planning to cut ten percent of its North American workforce, in efforts to shed costs.

CEO at Ford Mark Fields said the automaker was continuing its focus on cost and that is not just for how the environment is now, but preparing for a possible downturn in sales.

Nevertheless, Ford's stock price has dipped and its profits have been sluggish, putting more pressure on Fields to turn things around. The report states that the company's stock has fallen in the three years since Mark Fields become CEO.

Will Smith Defends Netflix As Cannes Streaming Debate Rages
Arnaud Desplechin's " Ismael's Ghosts ", with Mathieu Amalric, Charlotte Gainsbourg and Cotillard, was the opening-night film. Director Pedro Almodovar, Jury President of the 70th Cannes Film Festival and Jury members Agnes Jaoui and Will Smith pose.

It's unclear if Wednesday's announcement was a direct result of last week's events.

The job cuts are expected to be voluntary through the use of early retirement and separation packages, a Ford spokesman said.

Flying in the face of Trump's vaunted political campaign to increase the number of manufacturing jobs in America, the layoffs are projected to swell Ford's corporate coffers by some $3 billion, according to Motor Trend. It is unclear if the prospective job cuts will include hourly workers, and the job reduction plan could be complicated by pressure from President Donald Trump to increase hiring in US manufacturing sector.

The automaker even committed to ditching plans to build a factory in Mexico that had been under construction after the president criticized it, and instead announced it would add 700 jobs in MI. Earlier this year, it announced it would add 700 workers to a suburban Detroit plant in 2018 to make electric and self-driving vehicles.

The company did not confirm or deny the report, saying only that "reducing costs and becoming as lean and efficient as possible" is one of its key priorities, but that it has yet to announce any new job cuts.

But Johnson said Ford has a solid strategy and is making quiet moves that could pay off, like introducing a plug-in hybrid commercial vehicle in Europe.