Ford to cut 10% of global workforce

Mark Fields Ford CEO

The company has roughly 200,000 salaried employees worldwide, about half of which are in North America.

Media reports about Ford's job cut program emerged earlier this week but were not confirmed by the automaker until today.

Citing a person briefed on the matter, Reuters says Ford will offer "generous" early retirement incentives in an effort to reduce the automaker's salaried ranks by October 1.

The yet-unconfirmed job cuts will affect salaried Ford employees in North America and Asia, Reuters reports, while salaried jobs in Europe and hourly jobs around the globe aren't expected to be cut.

A spokesperson for the United Auto Workers union, which represents Ford factory workers, told BuzzFeed News that its members would not be affected by the cuts.

In a statement, Ford said that it remains focused on "becoming as lean and efficient as possible" but didn't provide any specifics on what would be included in the separation offers. The automaker's shares have fallen 40% since Fields became CEO in July 2014.

About two-thirds of the planned cuts are in North America and the rest in Asia. At the same time, Ford is investing heavily in autonomous driving and other newer technologies.

Ford's plan calls for $3 billion in cost reductions in 2017.

While Shanks said the rest of the year would remain flat against the previous fiscal, changed market dynamics with the U.S. auto sales taking a turn from a record-growth phase could bring the company's North America margins further down further after a significant drop in the most recent quarter.

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

In January, Ford scrapped plans to build a $1.6 billion auto factory in Mexico and instead added 700 jobs in MI.

That news followed the release of the company's first-quarter earnings which tumbled 35 percent, to $1.6 billion, year-over-year.

Announcing employee layoffs that are projected to include up to 10 percent of the company's total workforce, the beleaguered automaker is seeking to turn its ailing stock prices and company value around. It expects to earn a pretax profit of $9 billion this year, down from $10.4 billion in 2016.



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