Ford Motor Company is set to cut 10 percent of its workforce globally, the Wall Street Journal reports, with salaried employees most likely to be affected.
Profits during the first quarter of 2017 dipped 35 percent to $1.6 billion, prompting many investors to question the automaker’s priorities and overall strategy at Ford’s shareholders’ meeting earlier this month. Ford’s sales are trending downward for the first time in seven years, while the company expends more and more money expanding beyond its core business of building and selling passenger vehicles to pursue a stake in the transportation sector, put out a fully-autonomous production vehicle, and expand its lineup of electrified vehicles.
Ford could outline its plans to reduce its global workforce this week, reports the WSJ. The maneuver is most likely to affect salaried employees, although it’s unclear whether the jobs of hourly workers could also be on the chopping block.
Ford declined to comment on the report, saying only that the company “remain[s] 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. Reducing costs and becoming as lean and efficient as possible also remain part of that work. We have not announced any new people efficiency actions, nor do we comment on speculation.”
Ford stock is currently trading at $10.94 per share, down nearly 17 percent from its 2017 peak in January (at $13.17). The automaker’s employment in North America has swelled 25 percent over the last five years