Ford to cut 1400 salaried employees in North America, Asia

Ford to cut 1400 salaried employees in North America, Asia

The company plans to offer enticing retirement packages to salaried employees to reduce overall headcount, Reuters reports.

The No. 2 US automaker said it must focus on "becoming as lean and efficient as possible" as it announced job cuts that will affect 1,400 of about 15,000 salaried workers in its North America and Asia divisions and will be completed by October.

Ford declined to comment on any job cuts but said it remains focused on its core strategies to "drive profitable growth".

The job cuts will come through buyout packages released to eligible employees in June. Since Mark Fields assumed the role of CEO in July, 2014, shares have declined almost 40 percent, despite record profits over the last few years.

Ford announced plans last month to trim costs by $3 billion a year to free up money to develop the next generation of electric and self-driving cars and trucks.

In product development and those who work for Ford Credit, which already are improving total operating costs in other ways.

This, along with renewed efforts to hike profits, are parts of CEO Mark Fields' plans to address Ford's falling share price.

Kushner Hands-on Broker of $110B Saudi Arms Deal
Then an American official raised the idea of the Saudis' buying a sophisticated radar system created to shoot down ballistic missiles.

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.

General Motors and Fiat Chrysler have cut hourly jobs since the end of previous year, as the first decline in USA auto sales since 2009 has resulted in excess inventories of new cars on dealer lots.

General Motors Co (GM.N) has cut more than 4,000 since November, and moved to conserve capital by shedding its European operations and closing unprofitable operations in Asia.

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.

Nevertheless, Ford's stock price has dipped and its profits have been sluggish, putting more pressure on Fields to turn things around.

Ford shares fell 1.2 percent to $10.81 in morning trading after the company announced the reductions. Worldwide, FoMoCo employs about 200,000 people, which means that the job cuts could involve 20,000 people.

Related Articles