Ford Cutting White-Collar Jobs, Mostly Via Buyouts

Ford said April 27 when it reported first-quarter earnings that it planned to cut $3 billion in costs.

Ford has 200,000 employees globally, half of which work in North America. Ford is pouring billions into developing driverless cars, while sales of its conventional models are struggling to keep pace with rivals including General Motors Co. amid a slowing USA auto market.

The Ford Motor Company is planning to cut its global workforce by about 10%.

Ford hasn't confirmed yet, saying "we have not announced any new people efficiency actions, nor do we comment on speculation".

Ford said in January it was cancelling a planned Mexico plant and adding 700 jobs in MI. Earlier this year shares of electric auto manufacturer Tesla, which is a fraction of Ford's size, passed Ford in terms of market value.

Hourly jobs, particularly in North America, will not be cut as the Detroit automaker works to meet demand for new cars in its home region, which remains relatively strong despite recent reports of rising inventories.

There was no immediate comment from President Donald Trump, who needled Ford during his campaign over its plans to build a new small vehicle plant in Mexico. "Ford has said it expects its profits to fall in 2017 and has flagged slowing sales in the USA and China-two of the world's largest auto markets", the Journal notes.

Monday's announcement is Ford's latest cost cutting measure to turn the company into a profitable enterprise, after some recently depressing sales figures.

The cuts are the biggest to Ford's US white collar staff since 2007, when 7,200 workers took voluntary buyout packages. And it said the Focus was still moving to Mexico, but production would be consolidated into an existing factory there.

Investors have been indifferent to Fields' plan to pour billions into new technologies like driverless cars and robo-taxis to take on upstarts like Uber Technologies Inc and Waymo, Alphabet Inc's self-driving spin-off. A 10 percent reduction would mean a loss of 20,000 workers.

The plan to improve profitability by $3 billion comes as Ford's flagship F-series pickup trucks are selling well, but overall sales have slowed in the United States and China, Ford's two largest markets.

Related Articles

  • Big Sam: Palace would have changed fixture for Man Utd Europa final

    Big Sam: Palace would have changed fixture for Man Utd Europa final

    Claude Puel has vowed to get his side working on penalties before the final game of the season after yet another costly miss. Mourinho added he will field a team of kids against Palace and even begged rival boss Sam Allardyce to go easy on them.

    Scotiabank Reaffirms "Underperform" Rating for Encana Corp (ECA)

    In other news, Director Clayton Harvey Woitas bought 12,300 shares of Encana Corp stock in a transaction dated Monday, March 13th. Zacks Investment Research cut Encana Corp from a "buy" rating to a "hold" rating in a research note on Wednesday, January 25th.

    Britain's Labour launches 'radical, responsible' election manifesto

    Philip Hammond claims the Tories have uncovered a £58bn black hole in Labour's election manifesto spending plans. There would also be a new top rate of income tax of 50 percent, the reports said.
  • Harden, James top All-NBA team; George, Hayward shut out

    Davis and Wall had two of the best years of their careers this past season, and wholly earned the spots where they landed. While Davis' raw production was vast , Gobert finished with an advantage in most of the advanced metrics.
    House of Cards' First Lady 'had to fight for equal pay'

    House of Cards' First Lady 'had to fight for equal pay'

    And they are doing you a favor by giving you publicity. Francis is an orator, a poet, a demonstrator. Watch Wright discuss House of Cards below.

    Tehran mayor Qalibaf quits Iran presidential election race, backs conservative Reisi

    Rouhani has criticized Raisi's past as a senior prosecutor in the 1980s when thousands of jailed dissidents were executed. "I will dedicate all my abilities to support Rouhani" in Friday's election, Jahangiri said in a statement.
  • Inmate who lived upstanding life after he was mistakenly freed wins release

    After Lima-Marin served eight years in prison, another error was made. "But now we don't know what's about to happen", she said. Says Martinez: "Rene needs us to continue to fight to keep his family together and stop his deportation".
    Trump Says He Never Asked Comey to Close Flynn Probe

    Trump Says He Never Asked Comey to Close Flynn Probe

    After he was sacked, Trump reportedly tried to get former FBI Director James Comey to drop the investigation into the ex-general. I think it divides the country, I think we have a very divided country because of that and many other things.
    Arsenal were lucky but we don't care - Mourinho

    Arsenal were lucky but we don't care - Mourinho

    It might be a little more light hearted this time round, but don't expect it to last too long... He is a big manager so to have that something that is not normal", Mourinho said.
  • Why Concussion Spotters Couldn't Pull Sidney Crosby From Game 6 Vs. Capitals

    Crosby took a nasty spill in the first period when he was slammed into the end boards head-first while he tangled with Carlson. The first two? The ‘06 Oilers he beat and the 2012 Los Angeles Kings who got 15 points during their run from Williams.

    Chinese fighter flies inverted over US Air Force jet

    The Yellow Sea is the name given to the northern part of the East China Sea , west of the Korean peninsula. The collected samples can be analyzed to determine exactly what occurred.

    Roger Ailes, former Fox News chief who changed cable news, dead

    He began advising Donald Trump at a private lunch days before he launched his presidential campaign in June 2015. Hannity also said Ailes was like a second father to him after his father died shortly after he joined Fox News.