Ford plans to restructure as stock hits 6-year low

Employee headcount cuts expected

By Rod Meloni - Reporter, CFP ®, Kayla Clarke

DEARBORN, Mich. - Ford Motor Co. is in the midst of reorganization, which could mean pain for autoworkers.

Analysts believe the turn around is slowly but surely going to get very painful for workers.

Ford is talking about more than 25 billion in cuts and the sinking stock price is concerning.

The assembly lines have been churning out very profitable trucks and SUVs for a long time but we're coming up to the other side of the peak sales cycle. The company said it lost $1 billion in profits from the steel and aluminum tariff trade war and it's having trouble deciding on what its turn-around program is going to be like.

Some Wall Street analysts believe Ford is going to cut between 10 percent and 12 percent of its 200,000-plus employees.

Ford released a statement that reads in part:

"We are in the early stages  of reorganizing 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."

The reorganization will result in headcount reduction over time and the cuts will vary based on location.

 

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