Ford To Slash 1,400 White-Collar Jobs, Offer Buyouts Offers To 9,600

In January, amid much fanfare by Trump, Ford canceled plans to move 700 production jobs to Mexico. Hooray!

Today, Ford announced buyout offers to nearly a third of its white-collar force of 30,000 salaried employees.

Ford’s goal is to get rid of at least 1,400 jobs.

Reuters reports Ford to Cut 1,400 White-Collar Jobs, Shares Tumble

Ford Motor Co said on Wednesday it plans to cut 1,400 salaried jobs in North America and Asia through voluntary early retirement and other financial incentives as the No. 2 U.S. automaker looks to boost its sagging stock price.

Ford said the cuts would amount to about 10 percent of a group of 15,000 managers and other non-production workers and would reduce labor costs for that segment by 10 percent.

The company said a large group of salaried workers would not be covered by the planned cuts, including those in product development and in the Ford Credit unit. The cuts will not apply to Ford’s Europe or South America units.

About two-thirds of the buyout offers are in North America and the rest in Asia. Ford does not plan to cut hourly workers or production.

The automaker will offer financial incentives, including generous early retirement offers, to encourage salaried employees to depart voluntarily by the end of September. Ford said it expects it will hit the targets through voluntary offers, spokesman Mike Moran said.

The voluntary incentives offers will go to about 9,600 of 30,000 U.S. salaried workers, the company said.

Ford announced in 2015 it is investing $4.5 billion to add 13 new electric and hybrid vehicles by 2020 as it sought to position itself as a mobility company.

“You have to have one foot in today… but also one foot in the future,” Chief Executive Officer Mark Fields told reporters last month. “I think investors understand our strategy.”

Ford shares are down nearly 40 percent since Fields took the helm in July 2014.

Ford Motor Company

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OTHERS TO WATCH: Many others in the retail sector are lower this morning, including Macy's, Kohl's, American Eagle, Nordstrom (JWN), Abercrombie & Fitch (ANF) and Urban Outfitters (URBN).

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