Ford Prepares For New Layoffs Amid Cost-Cutting

(CTN News) – According to a report in Friday’s Wall Street Journal, citing individuals familiar with the situation, Ford Motor Company (NYSE:F) will be preparing to begin a second round of layoffs within a few weeks, citing people familiar with the situation.

This is part of a larger effort to streamline operations and cut costs, and this is the latest of several layoffs that Ford has announced in less than a year, and they are expected to be announced as early as next week, according to some people.

Among those affected by the layoffs, most of them are expected to be salaried workers in the United States.

The exact number of employees that Ford intends to let go as part of this latest round of layoffs is unknown at this point.

Although insiders told Reuters that the layoffs are likely to affect employees at Ford’s gas-engine division, as well as the electric-vehicle and software divisions, it is expected that the layoffs will affect those in Ford’s gas-engine division.

According to Ford’s spokesman, there is nothing to announce at this time.

He added, in a statement, that part of the ongoing management of our business includes matching the global staffing with our business plans going forward, as well as maintaining cost competitiveness as our industry evolves, as part of the ongoing management of our business.

In the opinion of Jim Farley, Ford’s Chief Executive Officer, the automaker has a greater task than any of its rivals when it comes to aligning costs and investing substantial funds into the changeover from gasoline engines to electric motors that is being made in its vehicle portfolio.

In order to reach Ford’s long-term goal of reducing costs by at least $3 billion in a year by mid-decade, the company is taking several approaches, such as addressing high warranty expenditures and streamlining all aspects of the company’s operations.

In addition, Farley has made it clear that Ford’s gas-engine vehicle operations, which generate the majority of the company’s profits today, must be made more efficient in order to improve profitability.

The stock of F ended trading Thursday at $14.19/share, up 1.21% from the previous trading session.

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