© Reuters. Ford (F) prepares for new round of layoffs amid cost-cutting measures
The Wall Street Journal reports Thursday, citing people familiar with the situation, that Ford Motor Company (F) is preparing to begin another round of layoffs in the coming weeks.
These layoffs, part of a larger effort to streamline operations and cut costs, are the latest of several that Ford has initiated in less than a year and could be announced as early as next week, some of the people said. The jobs affected are expected to mostly include U.S. salaried workers.
The exact number of people that Ford plans to let go in this latest round is unknown. However, according to insiders, it is expected that the layoffs will affect employees in Ford’s gas-engine division, as well as its electric-vehicle and software department.
A Ford spokesman said the company has nothing to announce.
“As we have said, part of the ongoing management of our business includes aligning our global staffing to meet future business plans, as well as staying cost competitive as our industry evolves,” he added, in a statement.
According to Ford Chief Executive Jim Farley, the automaker faces a greater task than its rivals in aligning costs while investing substantial funds into shifting its vehicle portfolio to electric models.
By the middle of the decade, Ford’s objective is to achieve a minimum of $3 billion in yearly cost reductions through several approaches, such as addressing high warranty expenses and streamlining operations across the company. Farley has emphasized the importance of eliminating inefficiencies in Ford’s gas-engine vehicle operations, which currently generate the majority of the company’s profits.
Shares of F ended trading Thursday up 1.21% to $14.19/sh.
By Michael Elkins | Michael.Elkins@streetinsider.com
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