Ford cutting jobs to jump start stalled stock

DETROIT-Ford Motor Co. has confirmed plans to cut 10 per cent of its salaried jobs in North America and the Asia Pacific region this year, about 1,400 positions.

Ford remains focused on its core strategies to "drive profitable growth", the company said in a statement.

Worldwide, FoMoCo employs about 200,000 people, which means that the job cuts could involve 20,000 people. Ford in February, announced it would acquire artificial-intelligence startup Argo AI with plans to invest $1 billion over the next five years to expand the firm.

But investors are clearly anxious that sales in the U.S., Ford's biggest market, are peaking.

Ford now employs some 202,000 workers worldwide and is the second largest carmaker. The Ford family wants the stock to go up.

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

The company has said that efforts to develop the next generation of electric and self-driving cars would lead to a lower profit margin in the near term.

The relocation might put the USA automaker on a clash with President Donald Trump, who has made enhancing vehicle employment a top priority. "We have not announced any new people efficiency actions, nor do we comment on speculation".

The voluntary incentives offers will go to about 9,600 of 30,000 US salaried workers, the company said.

The offer will be open to about 15,300 workers, including 9,600 in the US, 1,000 in Mexico, 600 in Canada and 4,141 in Asia. In North America and Asia, targeted salaried employees will begin receiving buyout offers in early June, according to the company.

In addition to pressure from investors, Ford and other automakers have been under pressure from President Trump to create American jobs.

Ford's move to cut its salaried workforce instead of assembly-line workers could protect it from scrutiny by President Donald Trump. The board convened ahead of last week's annual meeting to press him on his plans for improving the company's fortunes, a person familiar with the discussions said. The shares have declined 10 percent this year, compared with a 3.6 percent drop for GM and 23 percent gain by Fiat Chrysler Automobiles.