Finance, Markets

Ford Motor Company (NYSE:F) set for another layoff after waning profits

According to latest publications, US-based car-making giant Ford Motor Company(NYSE:F) will offer voluntary retirement and other financial perks to almost 15,000 workers in a propose to cut 1,400 jobs in North America and Asia.

Reports said, the downsizing arrives as the giant faces frail sales and waning profits.

Ford Motor Company(NYSE:F) said in a statement, although the job losses are less than earlier reports, the plan is part of an “accelerated attack on costs.” The amount of savings done from job cuts is not clarified.

Company’s chief executive Mark Fields recently said that the company would maintain an “intense focus on cost” to prepare it “for a downturn scenario.”

Company’s sales plunged 7% in the US and 11% in Europe in April year over year. The company has also suffered through the costs linked to safety recalls. Ford stock slipped more than 15% in the last year.

Meanwhile the company said on Wednesday these layoffs will not involve hourly or production workers and will not be implemented in Europe or South America.

Ford Motor Company(NYSE:F) said that workers will get further details in June. The company expects the downsizing to be finished by the end of September.

The company hired more than 200,000 people around the globe at the end of 2016, jointly with almost 101,000 in North America and 23,000 in Asia.

Furthermore the firm, with almost 7% of the global car market, has added thousands of workers in recent years, following the strong demand. Nevertheless in recent times it has reversed course.

Ford lay off 3,000 workers in South America since 2013. Last year, it slashed hundreds of jobs in Europe to cut costs by $200m yearly. It also reportedly cut about 2,000 roles in Asia.

US Congresswoman Debbie Dingell showed disappointment on the downsizing reports, whose district comprises Ford’s Dearborn, Michigan headquarters.

“Every job matters, and we need to ensure we are doing everything we can to ensure a strong manufacturing base and a healthy thriving auto industry.”

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