Ford Mo­tor to shed a tenth of its work­force

ME­DIA RE­PORTS HAVE SAID FORD MO­TOR IS PLAN­NING TO CUT ITS GLOBAL WORK­FORCE IN A BID TO PACIFY SHARE­HOLD­ERS AND MAKE THE COM­PANY LEANER AND MORE EF­FI­CIENT. HALF OF THE CAR­MAKER’S WORK­ERS ARE IN THE US.

The Daily News Egypt - - Business -

DW. Me­dia re­ports have said Ford Mo­tor is plan­ning to cut its global work­force in a bid to pacify share­hold­ers and make the com­pany leaner and more ef­fi­cient. Half of the car­maker’s work­ers are in the US.The sec­ond-largest car­maker in the US is plan­ning to cut its global work­force by 10 per­cent, the “Wall Street Jour­nal” re­ported in its online edi­tion.

It said the move was aimed at boost­ing profits and shoring up its sink­ing stock price and added the mea­sure would help im­prove the mood among Ford Mo­tor’s share­hold­ers.

The newspaper said an of­fi­cial an­nounce­ment on the job cuts was ex­pected as early as this week, with a Ford spokesman de­scrib­ing the re­port as “spec­u­la­tion.” He did con­firm, though, that “re­duc­ing costs and be­com­ing as lean an ef­fi­cient as pos­si­ble” re­mained part of a plan to drive profits. Trump watch­ing closely Ford has 200,000 em­ploy­ees world­wide, around half of them in the US where car sales have cooled af­ter years of boom.

The au­tomaker had ear­lier re­ported a 35-per­cent drop in bot­tom-line in­come for its first quar­ter, although its rev­enue climbed by 4 per­cent.

Net profit was not only hit by lower sales, but also by costly re­calls and ris­ing prices for steel and other ma­te­ri­als.

Any move by Ford to cut jobs at home is ex­pected to draw criticism from US Pres­i­dent Don­ald Trump, who has made a point of sup­port­ing car­mak­ers, ad­vis­ing them not to cut in­vest­ment and boost jobs at home rather than mov­ing them abroad.

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