Ford is planning to cut around 10% of its jobs worldwide in a bid to increase profits and boost its stock price, which is close to a five-year low, CNBC reports that the job cuts will involve mainly salaried workers in North America and Asia, according to sources.
Hourly jobs, particularly in North America, will not be cut as the Detroit automaker works to meet demand for new cars in its home region, which remains relatively strong despite recent reports of rising inventories. Worldwide, FoMoCo employs about 200,000 people, which means that the job cuts could involve 20,000 people.
Ford, in an official statement, did not confirm it is slashing jobs. “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,” the company said.
“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,” the statement added.
The report points out that unlike past job cuts, this round of cost cutting comes while Ford is solidly profitable – 2016 was the second most profitable year ever for the company. However, Ford is also investing heavily in future tech such as autonomous drive, electric vehicles and mobility solutions; and future profits might be affected.
“We’re as frustrated as you are by the stock price. The Ford family wants the stock to go up. Our net worth is tied up in this company, of course we want it to go up,” Ford chairman Bill Ford said during the company’s annual meeting last week when he was asked about the company’s stock price. Since current CEO Mark Fields took over in July 2014, Ford’s stock is down 36%, it is pointed out.
Looking to sell your car? Sell it with Carro.
P1 belonged to Geely so no problem
Then Geely need to cut 55% of its staff to afford P1 such a massive financial black hole.
Mana pulak Geely..PSA daah.
Jual kasi NAZA laah
You see, even Ford cutting jobs to make ends meet. But one car company give lifetime guarantee of job. You can work and get highly paid until you retire or mati.
Whether company losing millions per day nevermind, all jobs are 100% di jamin.
Which is it? Pls spell it out. I’m sure PT readers would like to know which idiotic company is this
your favorite car=Proton!
Really? But his statement dun jive with P1 at all. So…
Thailand might be heavily affected..since Thai is ford production hub
Yes. But bashers will putar alam says ini somehow salah MY.
The report says Ford reported that 2016 was the second most profitable year ever for the company.
The reason to cut 10% work force is bcos Ford want 2 fortify the profit pillars in their core business, transforming traditionally under-performing areas of their core business & investing aggressively, but prudently.
What Ford is saying here is they are cutting “under-performing” jobs to be more profitable & hopefully, increase the company’s stock price. Where did U get the idea it was M’sia fault??! Please explain.
Ask ur dupe, why ask me? im not that “creative”.