Ford plans job cuts to boost profits

Ford plans job cuts to boost profits

The company has not commented on its alleged plans to slash its global workforce, which in the USA alone includes 30,000 salaried employees, according to Reuters.

Reuters also learned from a source familiar with the plans that Ford intends to offer attractive incentives for early retirement so that it can cut the number of salaried employees by October 1.

The company details about the voluntary packages and how the program will work will be communicated with employees next month, with the job cuts will be completed by the end of September.

Ford's move to cut its salaried workforce instead of assembly-line workers could protect it from scrutiny by President Donald Trump.

But Ford plans to emphasise the voluntary nature of the staff reductions.

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.

Following criticism from Trump, in January Ford scrapped plans to build a $1.6 billion auto factory in Mexico and instead added 700 jobs in MI.

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Ford is adding new capacity, among other things converting a suburban Detroit plant to build a new SUV reviving the old Bronco nameplate, as well as a new midsize pickup that brings back the Ranger badge.

The latest announcement from Ford could prove another setback for Trump's push to create more jobs in American manufacturing.

The company has said that efforts to develop the next generation of electric and self-driving cars would lead to a lower profit margin in the near term. "Our net worth is tied up in this company, of course we want it to go up", Ford chairman Bill Ford said during the company's annual meeting last week when he was asked about the company's stock price. Analysts say Ford has failed to respond effectively to dramatic shifts, notably the boom in light truck sales; utility vehicles and pickups now account for almost two-thirds of the American new vehicle market. Chief Financial Officer Chuck Stevens said GM was considering cuts to its white collar staff in order to rein in costs. It's unclear if hourly factory workers are included, the Journal said. Information technology and analytics workers also won't be affected.

Ford did not confirm the report to news agencies Monday evening.

Ford has been hiring steadily since the recession as US vehicle sales roared back to reach record highs. Ford is pouring billions into developing driverless cars, while sales of its conventional models are struggling to keep pace with rivals including General Motors Co. amid a slowing USA auto market. North American sales for the manufacturer have consistently fallen since January, with Blue Oval vehicle sales plunging 21.1 percent in April. Electric auto maker Tesla Inc. recently surpassed Ford in market value even though it sells far fewer vehicles. The 114-year-old automaker has also embarked on a massive, 10-year plan to remake its Dearborn campus to attract tech-savvy young workers. Ford's share price has fallen some 40 percent since Mark Fields became the automaker's CEO in 2014, even as sales rose.

"We're frustrated, but our business is performing well".

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