Ford reportedly plans to cut 10% of its workers

Ford reportedly plans to cut 10% of its workers

Ford Motor Co. plans to cut 10 percent of its salaried jobs in North America and Asia Pacific this year in an effort to boost profits.

Someone briefed on Ford's plan said the automaker would offer generous incentives for early retirement to lower its current salaried workforce by October 1, but is not planning to make any cuts to hourly workers or in production.

Shares in Ford Motor Company (NYSE:F) edged higher in pre-market trading on Tuesday as reports suggested that the USA carmaker is planning to cut 10% of its global workforce.

Ford spokesman Mike Moran refused to comment directly on the reported job losses but said in a statement that the company was focused on driving "profitable growth".

Ford Motor Company confirmed this morning that it plans to cut 10 percent of its salaried workers in North America and the Asia Pacific in 2017.

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".

More news: Cyberattacks in 12 nations said to use leaked NSA hacking tool

As Ford has hired more people in the past three years, largely in new technology projects General Motors has reduced its USA workforce in response to lowered demand for cars, and has withdrawn from underperforming markets. Electric vehicle maker Tesla Inc. surpassed Ford in market value, CBS News reports.

April saw the automaker sell 214,695 vehicles, some 7.2 per cent fewer than the same time one year earlier. In North America and Asia, targeted salaried employees will begin receiving buyout offers in early June, according to the company.

The company, which employs a total of about 30,000 salaried workers in the US, did not break down the number of employees in MI that could be impacted. That report said the cuts would amount to 10% of all company employees, which would have been a much deeper reduction.

The company agreed to scrap a factory in Mexico and add 700 jobs in MI with the money saved. Ford employs about 24,000 people in Germany.

The cuts are the biggest to Ford's US white collar staff since 2007, when 7,200 workers took voluntary buyout packages.

Ford's shares lost more than a third of their value since Mark Fields was named CEO in 2014.

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