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.

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