Wall Street analyst predicts 25,000 job cuts; Ford calls that 'premature'

Layoffs likely to impact Ford workers in Europe

By Rod Meloni - Reporter, CFP ®

DETROIT - General Motors recently announced plant closures and major layoffs that would leave more than 14,500 of its workers at facilities in North America unemployed. 

On Tuesday news surfaced that Ford Motor Company is now considering cutting jobs for thousands as well. 

Ford could be preparing to cut 25,000 jobs worldwide, according to Adam Jonas, the auto analyst at Morgan Stanley. In response Ford noted there would be job cuts made, but not to the extent that Jonas predicted. 

The job cuts are a part of an initiative to radically reshape Ford Motor Company. The initiative aims to eliminate operations in regions that are not profitable. 

Most of the job cuts would be in Europe where Ford has struggled financially, Jonas said. Ford's layoffs could also impact workers in North America.  

Both GM and Ford are undergoing changes to adapt to the radical shifts taking place in the auto industry.

Both companies plan on eliminating costs in order to prepare for advanced vehicles of the future including self-driving and electric cars.

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