Ford reportedly plans to cut 10% of its workers


The Ford Motor Co., with its stock price falling and US sales stalled, plans a 10 percent cut in its global salaried workforce, people briefed on the plan said.

The company says it will offer voluntary early retirement and separation packages to its workers.

Ford Motor Co. on Wednesday said it plans to cut 10 percent of its salaried employees in North America and Asia to cut costs amid slowing sales and growing investments in new technology. Ford's operations in Europe and South America have already seen workforce reductions.

Since Mark Fields became Ford's chief executive in 2014, company shares have fallen by almost 40 percent.

This, along with renewed efforts to hike profits, are parts of CEO Mark Fields' plans to address Ford's falling share price.

Ford told BNN on Wednesday the moves come as part of a regular update on the company's progress of expanding to an auto and mobility company and that they outlined with the Ford team their "accelerated attack on costs" and "clarified speculation around people actions".

Ford did not confirm the report to news agencies Monday evening.

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On Tuesday, Ford's stock fell to $10.90 per share - its lowest point in the past year - before closing at $10.94 for the day.

Unlike job cuts in the past, this time Ford's moving to slash costs while the company is solidly profitable.

To potentially make matters worse-while investors portray Ford as behind the times-the US auto market is said to have plateaued. The automaker is under intensifying pressure from shareholders to improve its profits and boost its lagging stock price. Ford does not plan any cuts to its hourly workforce or production capacity, people familiar with the company's plan said. Of those, 30,000 positions are salaried which means job cuts could amount to 3000.

Shares of Ford have lost about 10% this year, as research and development costs for electric and self-driving cars have eaten into profit.

The move comes as Chief Executive Mark Fields is facing pressure from shareholders and board directors to sharpen the company's focus and reverse a almost three-year slid in the stock price.

But Ford and other USA automakers also have been under pressure from President Donald Trump to create