Ford responds to weak sales with plans to slash 1400 jobs
US automaker Ford is offering voluntary retirement and other financial incentives to around 15k employees as it looks to reduce its North American and Asian workforce by 1,400.
The job cuts, lower than suggested by early reports, form part of an “accelerated attack on costs”, Ford said, although it is not yet clear how much the move will save.
The company decided to downsize in response to weak sales and shrinking profits.
According to BBC News, Ford chief exec Mark Fields said the firm will maintain an “intense focus on cost” as it prepares for a “for a downturn scenario”.
Last month saw Ford’s sales dip year on year by 7% in the US and 11% in Europe.
Costs surrounding safety recalls have also hit the company.
At the end of 2016, Ford employed over 200k people around the world, with around half (101k) employed in North America and 23k in Asia.
Ford confirmed this week (May 17) that the latest round of job losses will not affect its workers in Europe or South America.
Company spokesperson Mike Moran said employees will be given more details in June, with the downsizing expected to be complete in September.