Ford Confirms 1400 Jobs Cuts And Early Retirement Offers

Ford Confirms 1400 Jobs Cuts And Early Retirement Offers

Ford Confirms 1400 Jobs Cuts And Early Retirement Offers

About 1,400 jobs will be eliminated, Ford said.

The buyout offers were a fraction of the 20,000 job cuts that some news outlets had reported Ford could announce this week.

Ford also pledged to invest $1 billion over the next five years in the software company Argo AI, which the automaker is counting on to develop artificial intelligence technology that will serve as the brains of future autonomous vehicles.

Ford has not only underperformed "Big Three" rivals General Motors Co.

Ford Motor Company said it plans to cut 1400 salaried jobs in North America and Asia through voluntary early retirement and other financial incentives as the No. 2 USA automaker looks to boost its sagging stock price.

The company will offer voluntary early retirement and separation packages to around 10 percent of salaried workers in departments such as sales, marketing and human resources.

The automaker expects 1,400 salaried employees to leave by the end of September, according to an emailed statement. Ford does not plan to cut hourly workers or production. The company said a large group of salaried workers would not be covered by the planned cuts, including those in product develop and in the Ford Credit unit.

The Indian operations of U.S. auto major Ford, that has announced around 1,400 job cuts in North America and Asia Pacific, are unlikely to be majorly affected by the exercise. Turbulence in other markets, like South America, hasn't helped.

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Ford's stock price has fallen almost 40 percent in the three years since Mark Fields became CEO.

The company recently started a 10-year, estimated billion-dollar transformation of its two main campuses in Dearborn.

Ford's problems aren't entirely unique. Fields and his team have talked at length about the work they are doing, and about the investments needed to undertake the transformation of Ford's businesses.

The company will provide workers with more details about the cuts in June as it aims to recover from share prices which have fallen by more than 15 per cent in the past 12 months.

I think Fields and company will make an effort to fill out that part of Ford's story in the months to come. Ford's stock touched as low as $10.75 on Wednesday, the lowest point since August 2015.

But some of Ford's problems are of its own making.

That's the sentiment among many small-business owners in the city where Ford has been headquartered for almost 114 years.

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