Neal E. Boudette
c.2019 New York Times News Service
Labor And Jobs; Layoffs And Job Reductions; Automobiles; Transportation; Ford Motor Co; Business; Corporations; Company Reports
Ford Motor Co. will lay off 800 employees in the United States over the next several weeks as part of a broader plan to shrink its salaried workforce by 7,000 people, or 10%, by the end of August.
The cost-cutting drive arises from an effort by the company’s chief executive, Jim Hackett, to increase profits in the face of slowing sales. Ford reported last month that it earned $1.1 billion in the first quarter, down from the same period a year earlier but better than analysts had expected.
Ford started cutting jobs last year and expects to hit the 7,000 target sometime in August, Hackett told employees in an email Monday.
“Within that total, and consistent with our goal to reduce bureaucracy, we will have reduced management structure by close to 20 percent,” he said. “This will result in annual savings of about $600 million.”
Hackett took over as chief executive two years ago as costs were rising and profits were falling. Analysts have criticized the deliberate pace of his turnaround, but investors have rewarded the company since its first-quarter earnings report. On Monday, Ford shares were trading at $10.26, up from $7.90 at the beginning of the year.