Ford to cut 1400 jobs in North America, Asia

Ford Motor Co. said Wednesday it aims to reduce its salaried workforce in North America and Asia by 10%, a cost-cutting move aimed at shoring up profits as the once-booming USA and Chinese auto markets start to cool.

Someone briefed on Ford's plan said the automaker would offer generous incentives for early retirement to lower its current salaried workforce by October 1, but is not planning to make any cuts to hourly workers or in production.

"Reducing costs and becoming as lean and efficient as possible also remain part of that work", the auto maker said in a statement.

None of the job cuts are expected to come from plant manufacturing, information technology, product development, credit department or analytics.

According to the publication, Ford could announce the layoffs as soon as this week and the job cuts will likely target mainly salaried workers.

That has led the company to find ways to cut some $3 billion out of its operating costs this year.

Ford has launched into a series of new technology investments under Mr. Fields, including a $4.5 billion electric-vehicle program and an aggressive autonomous-car project.

Employees in neither South America nor Europe are included in this announcement, Moran said, because they "already have completed people actions or have them under way".

Since Fields replaced Alan Mulally as CEO in July 2014, Ford stock prices have dropped about 40 percent. The company agreed to scrap a factory in Mexico and add 700 jobs in MI with the money saved.

The Journal says, "Deep job cuts in the US could trigger a political backlash at the White House, as President Donald Trump has repeatedly pointed to auto makers like Ford as examples of companies adding U.S.jobs".

The Dearborn automaker has been under pressure both from its board of directors and from shareholders in recent days to show that its strategic plan is working as USA industry sales begin to decline for the first time in seven years.

Ford refused to confirm or deny the story, but said in a statement that it was focused on its plans to "drive profitable growth".

Ford isn't the only automaker looking to get leaner as USA demand for new vehicles slows down.

Fields, 56, discussed the cost cuts that Dearborn, Michigan-based Ford plans for this year in a call with analysts last month when the company posted a 42 percent plunge in first quarter adjusted earnings.

To potentially make matters worse-while investors portray Ford as behind the times-the USA auto market is said to have plateaued.

Ford is getting leaner as it faces an onslaught of challenges, from slowing US sales to high-tech challengers to its own disgruntled shareholders.

The cuts belong to a formerly announced strategy to cut expenses by $3 billion, the person stated, as USA new automobile sales have revealed signs of decline after seven years of successive development since the end of the Great Recession.

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

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