Ford plans job cuts to boost profits

Ford Motor to slash global workforce by about 10%: WSJ

Ford Motor to slash global workforce by about 10%: WSJ

"Ford like other carmakers is under pressure to stem increasing investments in future technologies, so they need to make adjustments elsewhere", he said, adding that the USA and South America could see the biggest hits. Ford's employment has increased 25 percent in the past five years.

While the company is yet to make any announcement on the rumoured job cut, Ford did say it meant to concentrate on cost optimisation and higher efficiency.

Ford announced in January that it would scrap a plan to build a factory in Mexico in favor of adding 700 jobs in MI.

Ford is spending billions on future technologies like self-driving cars. Ford's share price has fallen some 40 percent since Mark Fields became the automaker's CEO in 2014, even as sales rose. The stock closed that day at $17.41 a share.

Ford announced the $3 billion cost cutting goal at the same time it reported sharply lower first quarter earnings, reports CNN.

The carmaker will emphasise the voluntary nature of the staff reductions by offering retirement incentives to salaried employees. Automakers have widespread shutdowns planned for the summer to adjust to the US vehicle market's recent slowdown following seven years of gains, conflicting with Mr. Trump's more upbeat portrayal of the state of the industry.

That means all three automakers are likely to face even tougher times in the coming years as they juggle conflicting demands of meeting Wall Street's expectations, investing more money in autonomous vehicles and dealing with slowing US auto sales.

The announcement comes as the company grapples with slowing sales after several years of growth.

After enjoying several years of growth at the start of the decade, it has hit choppier waters over the past year or so as sales and profits fall.

Executive Chairman Bill Ford told shareholders last week that the company isn't happy with the company's falling stock price, which has dropped 17% since January. But that has also generated heat.

At the start of the year it cancelled plans to build a new factory in Mexico after pressure from President Trump, who had also criticised General Motors' plans to produce cars there. And, we've heard, it'll work to boost the profitability of the parts of its business that have historically lagged (luxury, small cars, and its operations in some emerging markets). It might also take steps to cut costs on parts and component production.

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