Ford Motor said Wednesday it would cut its salaried workforce in North America and Asia by almost 10% as it seeks to boost profitability amid a falling stock price.
The automaker will offer voluntary early retirement and special separation packages to roughly 1,400 white-collar workers in the two regions combined and expects the cuts to come by the end of September.
Ford could cut 10% of its workforce across North America and Asia as part of the brand's latest cost-cutting measures, Reuters reports.
A Ford spokesperson, who declined to comment on the reported layoffs, said in a statement that the company is focused on "strategic priorities that will create value and drive profitable growth", including investing "aggressively, but prudently" in new opportunities.
The job cuts are a part of a plan announced previously to slash $3 billion in costs, said the person in the know, as new auto sales in the USA have been showing signs of slowing down following seven consecutive years of growth since the Great Recession ended.
Investors expressed concern that USA sales are peaking and Ford's market share is slipping.
But investors are anxious for signs that the company is positioned to capitalize on a disruptive wave of innovation that's expected to sweep through the auto industry, including electric vehicles, ride-sharing and self-driving cars. In fact, Ford's stock price barely budged this week.
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In this Tuesday, May 16, 2017, photo, the logo for the Ford Motor Company appears above a post on the floor of the New York Stock Exchange.
Fields and Executive Chairman Bill Ford have curried favor with the president this year, giving him advance notice of hiring and investment at American plants and canceling a small-car factory in Mexico.
Meanwhile, Ford said in a statement, that it had not yet announced any job cuts but did not deny the essence of the report. Electric auto maker Tesla Inc. surpassed Ford in market value, CBS News reports.
Ford has close to 30,000 US based salaried workers. The cuts, part of a previously announced plan to reduce the group's cost base by $3bn (£2.3bn), will be finalised on 1 October.
Ford has roughly 30,000 salaried workers in the United States and 200,000 salaried employees worldwide.
Ford stock traded in Germany rose 0.6 percent to $11.01 as of 12:33 p.m.in Frankfurt. Last Thursday, they grilled Fields and Ford during the annual shareholders meeting on why - despite billions in investment in the company's US facilities and new technology - the company hasn't been able to generate excitement on Wall Street.