Ford to cut global workforce

Ford surprised many analysts by announcing massive cost-cutting targets and plans to phase out many sedans in North America amid
Ford surprised many analysts by announcing massive cost-cutting targets and plans to phase out many sedans in North America amid surging demand for sport-utility vehicles and other trucks

US automaker Ford—which announced a major restructuring in July—unveiled plans Friday to reduce its workforce worldwide, without specifying the extent of the plan.

"We are in the early stages of reorganizing our global salaried workforce to support the company's strategic objectives, create a more dynamic and empowering , and become more fit as a business," Ford said late Friday.

"The reorganization will result in headcount reduction over time and this will vary based on team and location. We will announce more specifics at the appropriate time."

On July 25, Ford announced that a revamping of the company's operations could result in one-time charges of $11 billion over the next three to five years.

But it did not say whether this would result in job cuts or plant closures, rather indicating that it was considering redesigning certain models, reallocating cash to profitable segments and reconsidering certain strategic partnerships.

In April, Ford surprised many analysts by announcing massive cost-cutting targets and plans to phase out many sedans in North America amid surging demand for sport-utility vehicles and other trucks.

Ford said in late September that the company was seeing profits slashed by $1 billion due to tariffs imposed by President Donald Trump.


Explore further

Ford deepens cost cuts even as earnings rise

© 2018 AFP

Citation: Ford to cut global workforce (2018, October 6) retrieved 24 May 2019 from https://phys.org/news/2018-10-ford-global-workforce.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
7 shares

Feedback to editors

User comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more