The Ford Motor Co., with its stock price falling and USA sales stalled, plans a 10 percent cut in its global salaried workforce, people briefed on the plan said.
Reuters is reporting that "Ford plans to offer generous early retirement incentives to reduce its salaried headcount by October 1, but does not plan cuts to its hourly workforce or its production".
The auto giant will release details to employees about separation packages in early June and workers will leave by the end of September, the company said.
- In a statement, Ford said "Reducing costs and becoming as lean and efficient as possible also remain part of that work".
A source familiar with the plan told CNBC that Ford's cuts will involve primarily salaried workers in North America and Asia.
The voluntary incentives offers will go to about 9,600 of 30,000 USA salaried workers, the company said. "Ford has said it expects its profits to fall in 2017 and has flagged slowing sales in the USA and China-two of the world's largest auto markets", the Journal notes. However, Ford is also investing heavily in future tech such as autonomous drive, electric vehicles and mobility solutions; and future profits might be affected.
Certain areas of the business won't be targeted, including Ford's product development and credit divisions.
Ford shares fell 6 cents to $10.88 in premarket trading after the company announced the reductions.
Ford didn't confirm the report Monday night.
General Motors Co has cut more than 4,000 U.S.jobs since November, and moved to conserve capital by shedding its European operations and closing unprofitable operations in Asia. The company wants to boost profits and prop up its falling stock price.
Slashing jobs in the USA, even at a 10 percent rate or lower, is likely to spark some conflict with President Donald Trump's administration.
Last week, Ford's directors held a "strategy session" to review the company's priorities, and stockholders were critical of the company at its annual shareholders meeting.
But Ford and other US automakers also have been under pressure from President Donald Trump to create U.S.jobs. "Ford has said it expects its profits to fall in 2017 and has flagged slowing sales in the US and China-two of the world's largest auto markets", the Journal notes.
Ford Motor is going to slash its workforce globally by 10% in an effort to right its sliding stock prices.More news: Keys For the Cleveland Cavaliers Success In The Eastern Conference Finals