Canadian Manufacturing

Report says Ford is mulling 20,000 job cuts to boost profits

Ford Motor Co. has so far not confirmed the reports, which said the cuts would focus on salaried employees in an effort to raise its stock price


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Ford’s shares have lost more than a third of their value since Mark Fields, pictured above, became CEO in 2014. PHOTO: Ford

DETROIT—The Wall Street Journal is reporting that Ford Motor Co. is planning substantial job cuts in order to boost profits and raise its stock price.

The newspaper says the cuts would target salaried employees and would reduce Ford’s global headcount by an equivalent of 10 per cent.

Ford, based in Dearborn, Mich., employs about 202,000 employees at 62 plants around the world. That puts the potential cuts at more than 20,000 jobs.

Ford didn’t confirm the report Monday night.

In a statement, the company said it’s focused on reducing costs and improving efficiency. But Ford said it hasn’t announced any job cuts and won’t comment on speculation.

Investors are concerned that U.S. sales are peaking and Ford’s market share is slipping.

Ford’s shares have lost more than a third of their value since Mark Fields became CEO in 2014. Electric car maker Tesla Inc. recently surpassed Ford in market value even though it sells far fewer vehicles.

Read the full story on The Wall Street Journal’s website, here. (subscription required)


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