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Ford plans to cut 10% of jobs worldwide

29 May 2017

"Reducing costs and becoming as lean and efficient as possible also remain part of that work", it said in a statement.

The reductions will mostly be in North America and the Asia Pacific region.

As Reuters further points out, Ford's strategic plans to reduce its workforce by 10 percent may not sit well with U.S. President Donald Trump, who wants to boost employment in the auto industry. Additionally, Ford shares have dropped 40 percent since Mark Fields ascended to the CEO position in 2014. Earlier this year shares of electric auto manufacturer Tesla, which is a fraction of Ford's size, passed Ford in terms of market value.

Ford told BNN on Wednesday the moves come as part of a regular update on the company's progress of expanding to an auto and mobility company and that they outlined with the Ford team their "accelerated attack on costs" and "clarified speculation around people actions".

The Dearborn, Michigan, company says it will release more details to employees in June.

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Ford fell 0.3 percent to $10.91 as of 12:06 p.m.in NY trading.

Ford had about 30,000 salaried workers in the U.S.

Ford has been hiring steadily since the recession as US vehicle sales reached record highs.

America's second largest carmaker, Ford now employs some 202,000 workers worldwide.

Ford stock traded in Germany rose 0.6 percent to $11.01 as of 12:33 p.m.in Frankfurt.

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In addition to pressure from investors, Ford and other automakers have been under pressure from President Trump to create American jobs. The small cars that were to be built there will now be built at another Mexican plant.

Ford said April 27 when it reported first-quarter earnings that it planned to cut $3 billion in costs.

In Germany, where the carmaker's European operations are based, Ford has made voluntary buyout offers to a limited number of staff over the past few months, according to IG Metall union official Witich Rossmann, adding that he hasn't been informed of a bigger job-cut program.

For now boasts a workforce of around 201,000 employees, so a 10% cut would mean massive layoffs of around 20,000 people.

Ford has launched into a series of new technology investments under Mr. Fields, including a $4.5 billion electric-vehicle program and an aggressive autonomous-car project.

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After seemingly appeasing US president Donald Trump previous year with the cancellation of a proposed $1.7 billion (Rs 10,738 crore) Mexico-based factory and the announcement of a $700 million (Rs 4,421 crore) investment into a plant in Michigan, US, the move could anger the famously nationalistic Republican president.