Ford Motor Co. is conidering cost cuts and this includes personnel cuts high to almost 10 percent of its global operations, as per a report about the U.S. auto sales and slipping profits.
The company is seriously considering the global costs and is giving a “hard look” a ranking source informed The Detroit News. As such there is no official decision announced about the cuts to be made, the source said.
The Wall Street Journal on Monday night reported that those cuts are likely to target salaried employees, and lessen the global workforce of the automakers by 10 percent. However, the source told The News that this number appears to be high.
Ford has nearly 201,000 employees, and a reduction of 10 percent means a loss of 20,000 employees.
Ford said Monday night in a statement “We remain focused on strategic priorities to create value and drive profitable growth, and this includes fortifying the our core business profit pillars, transforming traditionally the areas underperforming of our core business and aggressively investing, but cautiously, in emerging opportunities.
Reducing the costs and being as efficient and lean is a part of the work, said an emailed statement. Talk of cuts is high as investors grow skeptical. The company is heavily investing in the areas of electrification, mobility and autonomy and mobility, as they are trying to fortify the profit pillars of the company in SUVs and trucks, thereby transforming its luxury and small-car business.
Despite profits and revenue growth, the Ford’s future did not generate excitement on Wall Street. This No.2 automaker stands unmoved in the two years 2015 and 2016 record profitability.