Ford may cut 10pc of jobs glob­ally

New Straits Times - - Business World -

SOUTH­FIELD (Michi­gan): Ford Mo­tor Co plans to cut about 10 per cent of staff world­wide as chief ex­ec­u­tive of­fi­cer (CEO) Mark Fields faces es­ca­lat­ing pres­sure to boost profit and a lag­ging stock price, the Wall Street Jour­nal re­ports.

The job cuts were ex­pected to mostly tar­get salaried em­ploy­ees, said the newspaper.

Ford share­hold­ers last week crit­i­cised com­pany lead­ers over what one in­vestor called the “pa­thetic” per­for­mance of the car­maker’s shares and ques­tioned how the board could con­tinue to sup­port Fields, who’s been CEO since 2014. The board sched­uled ex­tra meet­ing time ahead of last week’s an­nual meet­ing to press him on plans for im­prov­ing the com­pany’s for­tunes.

Fields is fac­ing sharp ques­tion­ing, with Ford’s shares hav­ing fallen about 36 per cent since he re­placed Alan Mu­lally, who steered the com­pany through the global fi­nan­cial cri­sis without a govern­ment bailout. Fields has poured bil­lions into elec­tric and self-driv­ing cars and ride-shar­ing ex­per­i­ments as its con­ven­tional ve­hi­cle busi­ness has strug­gled, more so than crosstown ri­val Gen­eral Mo­tors Co.

Ford’s first quar­ter ad­justed earn­ings fell 42 per cent, while GM said it re­mained on track for an­other record an­nual profit.

But any re­trench­ment by Ford in the United States would ex­pose the car­maker to risk of more criticism from Pres­i­dent Don­ald Trump. Bloomberg

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.