Business

Ford Motor to cut costs by $4 billion

WASHINGTON/DETROIT: Ford Motor plans to shrink its salaried workforce in North America and Asia by about 10 per cent as it works to boost profits and its sliding stock price, a source familiar with the plan told Reuters.

A person briefed on the plan said Ford plans to offer generous early retirement incentives to reduce its salaried headcount by Oct 1, but does not plan cuts to its hourly workforce or its production.

The move is part of a previously-announced plan to cut costs by US$3 billion (S$4.19 billion), as US new vehicles auto sales have shown signs of decline after seven years of consecutive growth since the end of the Great Recession.

The Wall Street Journal reported on Monday evening that Ford plans to cut 10 per cent of its 200,000-person global workforce, but the person briefed on the plan disputed that figure.

It is not clear if there are additional cuts planned.

Ford remains focused on its core strategies to "drive profitable growth," the company said in a statement.

"Reducing costs and becoming as lean and efficient as possible also remain part of that work," it said.

"We have not announced any new people efficiency actions, nor do we comment on speculation." - REUTERS

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