Ford To Cut 10 Percent Of Global Workforce

FILE Ford Motor Co. assembly workers listen during a news conference at an assembly plant in Flat Rock Michigan

FILE Ford Motor Co. assembly workers listen during a news conference at an assembly plant in Flat Rock Michigan

The company will offer early retirement incentives to workers in the hope that can reduce its headcount by October 1.

Large-scale layoffs at an icon of American manufacturing could come with a degree of political risk for Ford, which recently earned praise from President Trump for its plants to expand its factories in MI.

Ford Motor Co. on Wednesday said it plans to cut 10 percent of its salaried employees in North America and Asia to cut costs amid slowing sales and growing investments in new technology.

Ford's shares have lost more than a third of their value since Mark Fields became CEO in 2014. Ford's share price has fallen almost 40 percent over the past three years.

The reductions will mostly be in North America and the Asia Pacific region.

The voluntary incentives offers will go to about 9,600 of 30,000 USA salaried workers, the company said. Ford also plans to have self-driving cars on the streets by 2021.

The cuts are part of a previously announced plan to slash costs by $3 billion, the person said, as US new vehicles auto sales have shown signs of decline after seven years of consecutive growth since the end of the Great Recession.

Ford is aiming to cut $3 billion in costs in 2017, a person close to the matter told AFP.

Blessed with the best-selling vehicle in the USA, the enormously profitable F-series pickup truck, which would be a Fortune 500 company on its own, Ford remains endowed with strong financials.

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 auto sales and increased spending on advanced technologies.

In a statement, Ford would not confirm it is slashing jobs.

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.

That news followed the release of the company's first-quarter earnings which tumbled 35 percent, to $1.6 billion, year-over-year.

Ford announced in January that it would scrap a plan to build a factory in Mexico in favor of adding 700 jobs in MI. It expects to earn a pretax profit of $9 billion this year, down from a record of $10.4 billion in 2016.

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