Estimates put Ford's global headcount at around 200,000 employees, half of which are located in the United States alone, but only 30,000 of those are classed as "salaried" workers with the remainder employed on a casual basis.
"Ford Motor Co. aims to cut about 10% of its global workforce amid Chief Executive Officer Mark Fields's drive to boost profits and the auto maker's sliding stock price, according to people briefed on the plan", reports the Wall Street Journal. Ford said last August that it planned to hire more than 100 engineers, researchers and others in Palo Alto.
CEO at Ford Mark Fields said the automaker was continuing its focus on cost and that is not just for how the environment is now, but preparing for a possible downturn in sales.
Since Mark Fields became Ford's chief executive in 2014, company shares have fallen by almost 40 percent.More news: Julian Assange probe dropped by Swedish prosecutors
About two-thirds of the job reduction will occur in North America.
The cuts are the biggest to Ford's US white collar staff since 2007, when 7,200 workers took voluntary buyout packages. Prior to his inauguration, Trump crusaded against the outsourcing of America's vehicle industry to Mexico.
In a statement, Ford said it remains focused on "becoming as lean and efficient as possible" but didn't provide specifics on anticipated cost savings.
The cuts are part of Ford's plan to save $3 billion, as auto sales have dropped after seven years of consecutive growth since the end of the global crisis.More news: New Telegram update brings video messages, ability for bots to accept payments
Ford is aiming to cut $3 billion in costs in 2017, a person close to the matter told AFP.
Ford won praise from Trump when it announced in January that it was scrapping plans for a plant in Mexico and would invest $700 million in a MI plant to build electric and self-driving cars, CNN reported.
It was unclear Monday night whether any potential cuts would affect any of the company's hourly workforce.
Profits for the Detroit-based automaker fell 35% during the first quarter to $1.6 billion, the first such decline in seven years. After seven straight years of growth, US sales are starting to slow down, which will hurt automakers' profits. It previously forecast re-tax earnings of $9 billion, down from $10.4 billion for all of previous year. The President took credit for Ford's decision to invest in the US.More news: Success! Robert Mueller Named Special Prosecutor for Russia Investigation
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