Ford make a decision in recent to Save $600 million a year. This company decided to escape
7000 white-collar jobs. Otherwise, this manufacturing company cut off 10% of salaried staff
worldwide. According to Ford, 2400 worker from North America and 1500 positions from
voluntary buyout officer will be eliminated. They will be notified within Tuesday and
terminated by the end of August this year.
Cut the bureaucratic issues raised and simplify the management Ford make such a decision.
In addition, they also cut costs. This purpose company CEO Jim Hackett sent messages to
employees on Monday morning. In the past, similar action took their rival General Motors
(GM). GM cuts were too much deeper who eliminate 8000 non-union jobs or 15% of salaried
workers. As a result in North America, five factories were closed according to their
Reported that Ford started over the past month to restructuring this company that is expected
to cost thousands of jobs over the world. They also committed to spending $11 billion to
reshape their business. Ford hopes to boost sales overseas modernize their fleet of vehicles.
Ford focus on electric and autonomous driving technology. But till now ford did not reveal
details of how it will spend $11 billion. They also not clear about what job be cut to the
restructuring of the business.
Ford planned to close three plants in Russia, one factory in Europe and another from Brazil.
But it has said the moves announced so far represent only about $1 billion of the $11 billion
restructurings it plans to do.
Ford faces global challenges. The reveal the domestic parts of the company in North America
is much profitable in scale as the reported last quarter. According to Ford, they are struggling
for overseas, prompting significant restructuring there. Last year the losses in South America,
Asia, and Europe. In march, Ford announced to cut roughly five thousand jobs in Germany
and a number of jobs in the United Kingdom but later no details found.
Ford is under pressure to improve its profitability. It claimed the cost of some commodities
such as steel and aluminum are high up to $1 billion annually. But some officials said the
business reshape strategy is a long term process costs of the commodity is not responsible
anyway. Tesla (TSLA), an automaker who is very small as size. Tesla has rarely posted a
profit. It's worth about 40% less than UBER but other hands Ford's market value of $41
billion is a little bit higher than Tesla. But Ford and the rest of the auto industry is facing a lot
of pressure to prepare itself for the future.
Most of the top label autos are now competitive to do best something. Ford also trying to
grow up and update their strategy. So for that initially Ford reshape its business and rethink
about their new plan to go forward. That’s why Ford decides to cut 7000 white-collar jobs
those positions are not very effective to its business. Mentioned that overseas like Asia and
Europe is the source of its losses.