Ford Announces 1400 Salaried Job Cuts

The logo of Ford is seen during the 87th International Motor Show at Palexpo in Geneva Switzerland
The logo of Ford is seen during the 87th International Motor Show at Palexpo in Geneva Switzerland
Author

29 May, 2017

The Detroit automakers are under pressure from President Donald Trump to add jobs in the United States, but declining US sales and stalled share values are exerting a stronger force.

Ford's shares have lost more than a third of their value since Mark Fields became chief executive in 2014.

The Dearborn, Mich., auto maker has booked substantial profits in recent years, including two consecutive years of record earnings, but Ford's market capitalization earlier this year sunk below that of electric-car startup Tesla Inc.

Ford said last month it plans to cut costs by $3 billion in 2017, despite commodity prices rising by $1 billion. The statement added that the company has not announced new people efficiency action nor does it comment on any speculation.

The job cuts are also not expected to impact hourly workers at Ford's factories or its Europe and South America operations, which have previously undergone job cuts.

Ford has 200,000 employees globally, half of which work in North America.

Retrenching in the US risks reopening Ford to criticism from Trump.

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. All other "skill teams" will be included, however.

Ford steered clear of the bankruptcies that allowed GM and Fiat Chrysler Automobiles NV's Chrysler unit to cut significant costs under chapter 11 protections.

"With a robust dividend of 5.37%, which is more than twice the 2% yield average from the S&P 500 index, makes Ford stock worth looking at more closely", Saintvilus wrote.

Ford won praise from Trump when it announced in early January that it was scrapping plans for a plant in Mexico and would invest $700 million in a MI plant to build electric and self-driving cars.

Ford temporarily laid off 130 workers at an OH truck plant earlier this month to match lagging output with slower customer demand. "Car companies coming back to U.S. JOBS!"

The buyout affects about 15,000 employees in North America and the target is about 10 per cent, but that doesn't necessarily mean Ford Canada has a target of 60 employees, Mr. Moran said. It's also investing $1 billion in a Pittsburgh-based artificial intelligence company Argo AI, which will develop the virtual driver system for fully autonomous vehicles scheduled to arrive in 2021.


More news


  • The Monaco Grand Prix clearly highlights Ferrari's team orders

    The Monaco Grand Prix clearly highlights Ferrari's team orders

    British driver Jenson Button got a surprise message on the radio just as he was preparing to start the Monaco Grand Prix. Instead, Hamilton and his team used strategy as they opted to be the last vehicle to pit during the race.
    PSP Projects makes its debut; opens at Rs. 195

    PSP Projects makes its debut; opens at Rs. 195

    It further tanked 9.97 per cent to Rs 189.05 during the day before closing at Rs 208.95, showing a loss of 0.5 per cent. Shares of multidisciplinary construction company PSP Projects made a weak debut on stock exchanges today.
    England vs South Africa, second ODI

    England vs South Africa, second ODI

    In 2013, during a series against Pakistan, du Plessis also pleaded guilty to a charge of ball-tampering after rubbing the ball near the zipper on his pants .
  • Tushar Rishi: from fighting cancer to scoring 95% in CBSE board exams

    Tushar Rishi: from fighting cancer to scoring 95% in CBSE board exams

    While they inspire us, teach us everything about persistence, they also make us feel thankful for the life we have. In order to cope with his condition, Rishi is now following a strict diet and an appropriate line of treatment.
    Chris Cornell Has Passed Away

    Chris Cornell Has Passed Away

    His theme song for 2006's James Bond film Casino Royale broke into the Top 10 in the United Kingdom singles chart. He and Vicky have two children together - Toni and Christopher Nicholas Cornell .
    'Distracting' supermodel advert back at F1's Monaco Grand Prix

    'Distracting' supermodel advert back at F1's Monaco Grand Prix

    The British driver won last year's race from third on the grid, but will do well to even get a podium position from 13th place. You can watch the Monaco Grand Prix live on NBC and the NBC Sports app from 7:30am ET.
  • Trump tells 'confidants' USA  will quit Paris climate deal

    Trump tells 'confidants' USA will quit Paris climate deal

    Trump told Macron he is under "heavy" pressure back in the USA on the climate accord brokered by the Obama administration in 2015. President Donald Trump said that he would make a decision next week on whether the U.S. would commit to the 2015 Paris Agreement.

    Sofia Coppola takes directing prize at Cannes

    Bang plays the curator of an art museum, who sets up " The Square ", an installation inviting passers-by to acts of altruism. Sofia Coppola scooped best director at the Cannes film festival last night for her star-studded remake of The Beguiled .
    Trump dismisses 'fabricated' report of son-in-law's outreach to Russia

    Trump dismisses 'fabricated' report of son-in-law's outreach to Russia

    Leonid Slutsky, the сhairman of Russia's parliamentary worldwide affairs committee, called the allegations "complete nonsense". Mr Trump described news reports based on White House leaks as "fabricated lies made up by #FakeNews media".
  • Hillary Clinton slams Donald Trump in fiery speech

    Much of her speech was a rallying cry for graduates to get politically involved and engaged with their communities. Wellesley College's president, Paula A.

    Kruger, Phoenix fetch acting honors at Cannes

    Diane Kruger won for her performance in Fatih Akin's In the Fade about a woman whose husband is killed in a terrorist bomb attack. Jessica Chastain has decried the "disturbing" portrayal of women in film as she called for more female directors in cinema.
    Arsene Wenger to reveal his Arsenal future

    Arsene Wenger to reveal his Arsenal future

    Next season we must pay great attention to understand that we have to improve the numbers and quality of the squad. I said it many times, when we hear the word " Arsenal ", the first name we think is Arsene Wenger .