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17 May 2017
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| Ford (The Total Investment & Insurance Solutions) |
Ford is cutting 1,400 jobs in North America and Asia Pacific this year
in an effort to boost profits.
The company will offer voluntary early retirement and separation
packages to around 10 percent of its non-factory workers in departments like
sales, marketing and human resources. It expects the actions to be complete by
the end of September. The Total
Investment & Insurance Solutions
Ford believes it will meet its targets by voluntary means and doesn't
expect involuntary layoffs, spokesman Mike Moran said Wednesday. The Total Investment & Insurance
Solutions
"We remain focused on the three strategic priorities that will
create value and drive profitable growth, which include fortifying the profit
pillars in our core business, transforming traditionally underperforming areas
of our core business and investing aggressively, but prudently, in emerging
opportunities," Ford said in an email sent to employees early Wednesday.
"Reducing costs and becoming as lean and efficient as possible also remain
part of that work."
The offer will be open to about 15,300 workers, including 9,600 in the
U.S., 1,000 in Mexico, 600 in Canada and 4,141 in Asia. The Total Investment & Insurance Solutions
Certain areas of the business won't be targeted, including Ford's
product development and credit divisions. Factory workers and white-collar
employees in Ford's plants won't be affected. Information technology and
analytics workers also aren't targeted.
The Dearborn, Michigan, company says it will release more details to
employees in June.
Ford has been hiring steadily since the recession as U.S. vehicle sales
reached record highs. In its 2011 contract with the United Auto Workers union,
it pledged to hire 12,000 factory workers by 2015. Earlier this year, it
announced it would add 700 workers to a suburban Detroit plant in 2018 to make
electric and self-driving vehicles. The
Total Investment & Insurance Solutions
But investors are clearly worried that sales in the U.S., Ford's biggest
market, are peaking. They're also unsure about Ford's heavy spending on
technology with an uncertain future, like its recent investment of $1 billion
in Argo AI, an artificial intelligence startup. Ford's stock price has fallen
nearly 40 percent over the last three years. The Total Investment & Insurance Solutions
Ford shares fell 6 cents to $10.88 in premarket trading after the
company announced the reductions.
Ford's net income fell 35 percent to $1.6 billion in the first quarter.
It expects to earn a pretax profit of $9 billion this year, down from a record
of $10.4 billion in 2016.The Total
Investment & Insurance Solutions
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