Ford Motor plans to shrink its full-time workforce in North America and Asia as it works to boost profits and its sliding stock price, a source told Reuters. Fred Katayama reports.
A source says Ford is planning to cut about ten percent of jobs in North America and Asia. Most of them will be salaried workers who will get incentives to leave. Ford will not cut its hourly staff. The reductions are part of a previously announced plan to slash costs by $3 billion as Ford adjusts to falling auto sales. Ford declined to comment. Reuters correspondent Joe White says the company is trying to raise its profitability just as Wall Street has given up on it. The stock has been down almost forty percent since Mark Fields became CEO. (SOUNDBITE) JOE WHITE, REUTERS REPORTER, (ENGLISH) SAYING: "Cutting overhead costs, which is what this move to cut salaried staff is all about, is probably just one of the number of moves that Ford is gonna have to make as the U.S. market goes downhill in order to try to prop up its profit margins and demonstrate it's got room to continue to deliver dividend and invest in whatever comes next for automobiles." But the job cuts could put Ford on a collision course with President Donald Trump, who has made boosting auto employment a top priority. In January, in response to Trump's criticism, Ford scrapped plans to build a factory in Mexico and, instead, added 700 jobs in Michigan. In March, it said it would invest more than a billion dollars and create another 130 jobs in the state.