Ford to Cut 10% of Global Workforce

Ford is to announce a plan to cut 10% of its global workforce later this week, the Wall Street Journal reported late Monday. 

The Dearborn, Mich., automaker has been under pressure both from its board of directors and from shareholders in recent days to show that its strategic plan is working as U.S. industry sales begin to decline for the first time in seven years.

Ford’s profits sank 35% during the first quarter to $1.6 billion as higher costs for warranties, recalls and materials eroded profits.

Ford could outline the job cuts as early as this week, according to the Journal. The cuts are said to largely target salaried employees.

The automaker, in a statement, said it has not yet announced any job cuts but did not deny the essence of the report. In fact, the company’s statement emphasized the need to, at times, reduce costs.

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Source: USA Today | Brent Snavely, Detroit Free Press