News has come to light that Ford (NYSE:F) is planning to cut ten percent of its North American workforce, in efforts to shed costs.
The carmaker currently hires approximately 30,000 staff in the US, an estimated 3,000 of whom will face being cut in order to “drive profitable growth”.
Plans to cut costs by $3 billion will be finalised in October.
“Reducing costs and becoming as lean and efficient as possible also remain part of that work,” it said in a statement. “We have not announced any new people efficiency actions, nor do we comment on speculation.”
The automaker noted that it will remain focused on the strategic priorities: “Fortifying the profit pillars in our core business, transforming traditionally underperforming areas of our core business and investing aggressively, but prudently, in emerging opportunities.”
“We are continuing our intense focus on cost and the reason for that is not only mindful of the current environment that we’re in, but also I think preparing us even more for a downturn scenario,” added Mark Fields, Chief Executive.
The carmaker will emphasise the voluntary nature of the staff reductions by offering retirement incentives to salaried employees.
After it faced criticism from US President Trump in January, Ford scrapped plans for a new $1.6 billion car factory in Mexico. The carmaker said instead that it would invest $1.2 billion in three Michigan facilities whilst creating 130 new jobs. The President took credit for Ford’s decision to invest in the US.
Trump posted on Twitter before Ford could release official plans: “Major investment to be made in three Michigan plants. Car companies coming back to U.S. JOBS! JOBS! JOBS!”
Ford’s share price has fallen by almost 40 percent since Mr Fields took started his role in 2014. April saw Ford sell 214,695 vehicles, approximately 7.2 percent fewer than the same period one year earlier.
Ford currently employs some 202,000 workers worldwide and is the second largest carmaker.