Published: Sat, May 20, 2017
U.S. | By Monique Johnson

Ford to cut 1400 salaried jobs in North America, Asia

Ford to cut 1400 salaried jobs in North America, Asia

Ford Motor Co is planning to shrink its workforce of salaried employees in both Asia and North America by as much as 10% in its attempt to boost its profits and its sliding price of stock, said sources familiar with its plans. The manufacturer intends to eliminate 1,400 positions in North American and Asia by the end of September, using a voluntary program to woo employees with early retirement and separation packages.

New Delhi, May 17 The Indian operations of United States auto major Ford, that has announced around 1,400 job cuts in North America and Asia Pacific, are unlikely to be majorly affected by the exercise.

The company, which employs a total of about 30,000 salaried workers in the US, did not break down the number of employees in MI that could be impacted. The automaker's shares have fallen 40% since Fields became CEO in July 2014. However, Ford is also investing heavily in future tech such as autonomous drive, electric vehicles and mobility solutions; and future profits might be affected.

Ford has been in the news recently. "We have not announced any new people efficiency actions, nor do we comment on speculation", the company said.

In March, Ford said it would invest $1.2 billion in three MI facilities and create 130 jobs in projects largely in line with a previous agreement with the United Auto Workers union.

Ford shares fell 1.2 percent to $10.81 in morning trading after the company announced the reductions.

But investors are clearly anxious that after seven straight years of growth, USA sales are peaking and Ford's share of that critical market has been falling.

During the company's annual meeting last week, a number of shareholders pressed Ford's management about the company's stock. He has a $10 price target on the shares.

"Fields was extremely candid about the market challenges including slowing USA sales, pricing pressure and rising commodities", UBS said in a research note Monday.

Ford also isn't likely to cut jobs in its emerging businesses, like its research center in Palo Alto, California.

As Reuters further points out, Ford's strategic plans to reduce its workforce by 10 percent may not sit well with U.S. President Donald Trump, who wants to boost employment in the auto industry.

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