Ford to cut 1400 salaried employees in North America, Asia

About half of Ford's 200,000 employees work in North America.

The automaker will offer financial incentives to encourage salaried employees to depart voluntarily, including generous early retirement offers, a person briefed on the plan said.

Ford will allegedly cut approximately 10 percent of its global workforce in order to bolster corporate profits and stem stock-price bleeding, The Wall Street Journal reports, citing sources close to the plan.

Gilbert said the cuts are expected to come in areas other that IT and manufacturing.

The company said a large group of salaried workers would not be covered by the planned cuts, including those in product development and in the Ford Credit unit.

In an email to employees, Ford said it wants to strengthen its core business and invest aggressively in new opportunities.

Ford has not said how the new job cuts will impact its earnings for all of 2017. Since Mr. Field became CEO in mid-2014, Ford stock has fallen nearly 40%, notes the WSJ.

Job cuts form part of Ford's previously announced strategy to generate $3 billion in cost reductions, a target that the company's management team believes is necessary to boost profitability in the face of flagging sales in the world's two largest auto markets, the USA and China.

There was no immediate comment from President Donald Trump, who needled Ford during his campaign over its plans to build a new small auto plant in Mexico.

Michelle Krebs, an analyst with AutoTrader, said Ford may be taking a prudent action to prepare for declining US industry sales.

Lowering costs and being leaner and as efficient as possible, remains part of that focus, said the automaker in a prepared statement.

In January, Ford also added 700 MI jobs, following criticism from Trump over plans to increase production in Mexico. Electric auto maker Tesla Inc. surpassed Ford in market value, CBS News reports.

Auto sales fell in March and April, with Ford falling 7.2% in year-over-year sales.

Ford did not confirm the report to news agencies Monday evening.

Ford's profits sank 35% during the first quarter to $1.6 billion as higher costs for warranties, recalls and materials eroded profits.

If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course. It previously forecast re-tax earnings of $9 billion, down from $10.4 billion for all of previous year.

Latest News