Ford Motor Co. is doing its best to fight the downturn in the car market but it’s not that easy, and it seems like it’s not that easy, and the fight is almost lost. The major American automaker is preparing for major reductions to its worldwide workforce amid CEO Mark Fields’ renewed efforts to hike profits and address the company’s falling share price.
Ford plans to shrink its salaried workforce in North America and Asia by about 10 percent, and will offer generous early retirement incentives to reduce its salaried ranks by Oct. 1, but the company does not plan cuts to its hourly workforce or production levels. Ford is targeting $3 billion in cost reductions this year to enhance earnings in 2018 as U.S. light-vehicle demand begins to slip after seven straight years of gains. The company's stock price has suffered during the three years Fields has been CEO, succeeding Alan Mulally, and Ford’s market value has slipped behind Tesla Inc. and General Motors. The job reductions, which are expected to be disclosed as early as this week, affect salaried employees and aim to cut Ford's global head count by about 10 percent. It is not clear if there are additional employment cuts planned.
The automaker may face potential fallout from President Donald Trump, who has made boosting U.S. auto employment a top priority. The company plans to emphasize the voluntary nature of the staff reductions.
