Ford Offering Buyout Packages to About 15,000 Workers
June 08 2017 - 8:30PM
Dow Jones News
By Christina Rogers
Ford Motor Co. is offering buyout packages to about 15,000
salaried workers in North America and Asia in a cost-saving move
that is aimed at boosting profits amid slowing sales in the U.S.
and China.
The offers target about 10% of the white-collar workforce in
each region with the aim of trimming 1,400 employees from the
global head count, the company said. Workers who accept the
voluntary buyouts are expected to leave by Sept. 30.
The Dearborn, Mich., car maker is struggling to prove to Wall
Street that it can continue to boost profits even as sales in the
U.S. -- its largest and most profitable market -- begin to
slide.
The staff reduction plan was put into place under former chief
executive Mark Fields, who was ousted last month after failing to
reverse a prolong stock price slump that frustrated shareholders
and the company's board.
His replacement, Jim Hackett, has vowed to move faster and speed
up decision making. He has already restructured the management team
to reduce the number of executives reporting to him directly and
aligned more functions under two global chiefs, Jim Farley and Joe
Hinrichs.
The job cuts target specific departments, including
communications, finance, government affairs and marketing.
The Wall Street Journal first reported Ford's plans to trim its
salaried workforce in May.
Write to Christina Rogers at christina.rogers@wsj.com
(END) Dow Jones Newswires
June 08, 2017 20:15 ET (00:15 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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