Ford plans to cut 10% of workforce
19 May, 2017
Ford is planning to cut around 10% of its global workforce in an attempt to boost profits, news wires reported. With the measure, CEO Mark Fields aims at stopping the slide in the US car company's share price. The company's share price has fallen by nearly 40% since Fields took up his role in the middle of 2014. The cuts, first reported in the Wall Street Journal, are part of a plan to save $3bn during 2017.
Ford refused to confirm or deny the story, but said in a statement that it was focused on its plans to “drive profitable growth”. “Reducing costs and becoming as lean and efficient as possible also remain part of that work. We have not announced any new people efficiency actions, nor do we comment on speculation,” it added.
The company employs around 200,000 people, with half of them in North America. In March, the carmaker announced that it would spend $1.2bn to upgrade three plants in Michigan and create 130 new jobs. At the start of the year it cancelled plans to build a new factory in Mexico after pressure from President Trump, who had also criticised General Motors' plans to produce cars there.