Ford Motor Co is planning to shrink its workforce of salaried employees in both Asia and North America by as much as 10% in its attempt to boost its profits and its sliding price of stock, said sources familiar with its plans.
Someone briefed on Ford’s plan said the automaker would offer generous incentives for early retirement to lower its current salaried workforce by October 1, but is not planning to make any cuts to hourly workers or in production.
This move could put the automaker on a direct collision course with U.S. President Donald Trump, who made increasing employment in the auto industry one of his top priorities.
Ford has close to 30,000 U.S. based salaried workers.
The job cuts are a part of a plan announced previously to slash $3 billion in costs, said the person in the know, as new auto sales in the U.S. have been showing signs of slowing down following seven consecutive years of growth since the Great Recession ended.
On Monday night a report in the Wall Street Journal said Ford was planning to cut as much as 10% of its more than 200,000 global workforce, but the source briefed on that plan did not agree with the figure and requested anonymity in order to discuss the situation.
Ford would not comment on job cuts when asked but did say it continued to be focused on core strategies in order to drive more profitable growth.
Lowering costs and being leaner and as efficient as possible, remains part of that focus, said the automaker in a prepared statement. The statement added that the company has not announced new people efficiency action nor does it comment on any speculation.
Ford is planning to emphasize staff reductions on a voluntary nature. The automaker said on April 27 when it posted earnings for the first quarter than it was planning to cuts costs by $3 billion.
CEO at Ford Mark Fields said the automaker was continuing its focus on cost and that is not just for how the environment is currently, but preparing for a possible downturn in sales.
President Trump during his campaign for the presidency last year was very critical of the industry’s use of plants in Mexico to manufacture vehicles that were to be sold in the U.S. market.
Since he took office, Trump regularly has focused on jobs creation in sectors such as the auto industry, though not place have been released on how to do so.