On Monday night it was reported that Ford Motor Company was preparing to announce plans to cut ten percent of its salaried employees globally, in an attempt to cut costs and bolster profitability to prop up the value of its stock.
If those on Wall Street heard, they didn’t seem to care much at all; Ford shares closed at $10.94 per share Tuesday, down roughly one percent from their $11.06 open. Since Mark Fields assumed the role of CEO in July, 2014, shares have declined nearly 40 percent, despite record profits over the last few years.
The yet-unconfirmed job cuts will affect salaried Ford employees in North America and Asia, Reuters reports, while salaried jobs in Europe and hourly jobs around the globe aren’t expected to be cut. The automaker will reportedly offer employees financial incentives to make some inclined to leave the company voluntarily, including early retirement offers.
Ford last month committed to cutting costs by $3 billion this year, despite that commodity prices are up by $1 billion. The company has not commented on its alleged plans to slash its global workforce, which in the US alone includes 30,000 salaried employees, according to Reuters.