Ford plans big job cuts

Gladys Abbott
May 19, 2017

Employees in some operations are not eligible, including salaried employees in at Ford factories in Canada that are producing vehicles and engines and workers in the company's credit division.

The job cuts are a part of a plan announced previously to slash $3 billion in costs, said the person in the know, as new auto sales in the USA have been showing signs of slowing down following seven consecutive years of growth since the Great Recession ended.

Ford's plans to cut jobs were first reported by The Wall Street Journal on Monday night.

"We have not announced any new people efficiency actions, nor do we comment on speculation", he said.

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 could cut 10% of its workforce across North America and Asia as part of the brand's latest cost-cutting measures, Reuters reports.

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The cuts are the biggest to Ford's US white collar staff since 2007, when 7,200 workers took voluntary buyout packages.

President Trump on the campaign trail routinely criticized the auto industry for building plants in Mexico and making cars and vehicle parts there instead of the U.S.

In March, Ford said it would invest $1.2 billion in three MI facilities and create 130 jobs in projects largely in line with a previous agreement with the United Auto Workers union.

Ford's stock price has fallen almost 40 percent over the last three years as investors worry that sales in the US, its biggest market, are peaking. Fields was grilled by his board last week and impugned by investors eager for a turnaround in Ford's declining earnings and shares.

Ford also isn't likely to cut jobs in its emerging businesses, like its research center in Palo Alto, California. Electric auto maker Tesla Inc., led by Elon Musk and based in Palo Alto, recently surpassed Ford in market value even though Tesla sells far fewer vehicles. As of mid-morning, Ford shares were off by more than 1 percent, to around $10.83, continuing a almost two-week slide.

A Ford spokesman said the reductions will affect corporate staff, including the finance, legal, human resources, communications, government, marketing, sales and service departments.

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