Car Giant Ford Set To Axe 24,000 Workers

Ford Cars

Car giant Ford is set to let go of 24,000 workers as part of an extensive ‘redesign’ of the manufacturer.

The U.S automaker is reportedly proposing on the cuts as it struggles to keep up with competition from the likes of General Motors and Volkswagen.

According to NBC News , the business is revising its workforce in a move believed to be impacted by President Trump’s tariffs.

It will see the company have fewer layers, and offer more decision-making power to employees, the company said.

“A lot of the (reorganisation) is about making different choices about strategy,” its chief financial officer Bob Shanks told NBC News.

He said that the goal isn’t just to slash spending but to improve the overall “fitness” of the business.

Ford, which announced plans for a mammoth $25.5billion restructuring in July, unveiled plans on Friday to reduce its workforce worldwide, without specifying the extent of the plan.

“We are in the early stages of reorganising our global salaried workforce to support the company’s strategic objectives, create a more dynamic and empowering work environment, and become more fit as a business,” a Ford statement said.

“The reorganisation will result in headcount reduction over time and this will vary based on team and location. We will announce more specifics at the appropriate time.”

While the company wasn’t specific as to the extent of its downsizing, Morgan Stanley said it estimates “a global head count reduction of approximately 12 per cent.”

That means as many as 24,000 employees could face redundancy. Ford employs a total of 202,000 workers worldwide.

On July 25, Ford revealed plans to overhaul the structure of the company in a move that could save it billions over the next five years.

However at the time it made no reference to closures or employee cuts, suggesting it was a primarily strategic redesign.

In late September the company said it was seeing profits slashed by $1billion (£765,000) due to tariffs imposed by Trump.

The company has also resisted calls by Trump to relocate its production of hatchback wagons to the United States from China in August.

Citing Trump’s new tariffs, Ford on August 31 said it was dropping plans to ship the Focus Active from China to America.

Trump took to Twitter to declare victory: “This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!’

But in a statement, Ford said “it would not be profitable to build the Focus Active in the U.S” given forecast yearly sales below 50,000.

Manufacturer Nissan has also hinted at plans to relocate its largest European factory over the next few years amid growing Brexit tension.

The Japanese car giant has warned a hard Brexit will have “serious implications” for the car-maker’s Sunderland factory.

Nissan, which employs about 8,000 people in the UK, said crashing out of the EU’s single market and customs union into World Trading Organisation rules would be detrimental to its operation. Sunderland voted for Leave in 2016.

View the original article

Need a logbook loan today?

Find out about our Logbook Loans and apply Today!

Got any questions? Choose from the following: