Ford Confirms Plans to Cut 10 Percent of Workforce
May 17, 2017—Ford confirmed that it would cut nearly 10 percent of its salaried workforce in its North America and Asia Pacific divisions, according to USA Today.
The cuts, which Ford said would occur through "voluntary" buyouts and early retirement packages, will affect 1,400 of about 15,000 salaried workers in those regions. The Dearborn, Mich.-based automaker said in a statement that it must focus on "becoming as lean and efficient as possible." The reductions will be spread out among "most" salaried departments, except product development, manufacturing and the company's internal credit division. They will be completed by October.
"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," Ford said in a statement.
Blessed with the best-selling vehicle in the U.S., the enormously profitable F-series pickup truck, which would be a Fortune 500 company on its own, Ford remains endowed with strong financials. But investors are anxious for signs that the company is positioned to capitalize on a disruptive wave of innovation that's expected to sweep through the auto industry, including electric vehicles, ride-sharing and self-driving cars.