Ford may cut 10pc of jobs globally

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