Ford to cut 1400 salaried jobs in North America, Asia

Ford to cut 1400 salaried jobs in North America, Asia

Ford to cut 1400 salaried jobs in North America, Asia

Ford Motor Co said on Wednesday it plans to cut 1,400 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 automaker will reportedly offer employees financial incentives to make some inclined to leave the company voluntarily, including early retirement offers.

"Reducing costs and becoming as lean and efficient as possible also remain part of that work", the auto maker said in a statement.

The job cuts are also not expected to impact hourly workers at Ford's factories or its Europe and South America operations, which have previously undergone job cuts.

The cuts are the biggest to Ford's USA white collar staff since 2007, when 7,200 workers took voluntary buyout packages.

The company's share price has fallen by almost 40% since Mr Fields took up his role in the middle of 2014.

Ford announced in 2015 it is investing $4.5 billion to add 13 new electric and hybrid vehicles by 2020 as it sought to position itself as a mobility company.

Additionally, Ford's profits have slowed in recent months as demand for cars drops.

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The company issued a statement saying it is focused on reducing costs and improving efficiency, but said it has not announced any job cuts and won't comment on speculation. United States auto sales in April fell about five percent compared with a the year-ago period.

Ford shares fell 1.2 percent to $10.81 in morning trading after the company announced the reductions.

Large-scale layoffs at an icon of American manufacturing could come with a degree of political risk for Ford, which recently earned praise from President Trump for its plants to expand its factories in MI.

Last week, Ford's directors held a "strategy session" to review the company's priorities, and stockholders were critical of the company at its annual shareholders meeting.

The No. 2 USA auto maker is also facing weaker profits in Asia-Pacific, where softer sales and intensifying price competition in China are dinging profits for the region.

Share prices at the beginning of the week closed at US$10.94, barely above Ford's 52 week low of $US10.90 per share, and well below its 52 week peak of US$14.04.

Ford also isn't likely to cut jobs in its emerging businesses, such as its research center in Palo Alto, California.

The president has repeatedly roasted companies for planning to move jobs overseas, or make substantive cuts to their US workforce.

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