The Ford Motor Company is expected to lay off up to 24,000 workers worldwide as part of a ‘redesign’ that is believed to be impacted by President Donald Trump’s tariffs.
The American automaker is planning the job cuts as it struggles to keep up with competitors like General Motors and Volkswagen, according to NBC News.
Ford, which announced a major $25.5billion restructuring in July, unveiled plans Friday to reduce its workforce worldwide, without specifying the extent of the plan.
‘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,’ Ford said late Friday.
‘The reorganization will result in headcount reduction over time and this will vary based on team and location. We will announce more specifics at the appropriate time.’
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The Ford Motor Company is expected to lay off up to 24,000 workers worldwide as part of a ‘redesign’ that is believed to be impacted by President Donald Trump’s tariffs. A worker is seen above at a Ford factory in Dagenham, England in this January file photo
Trump slaps $200 billion tariffs on China in escalating trade war
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While the company wasn’t specific as to the extent of its downsizing, Morgan Stanley issued a report which estimated ‘a global headcount reduction of approximately 12 per cent.’
That means 24,000 employees will likely lose their jobs. Ford employs a total of 202,000 workers worldwide
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On July 25, Ford announced that a revamping of the company's operations could result in one-time charges of $11billion over the next three to five years.
But it did not say whether this would result in job cuts or plant closures, rather indicating that it was considering redesigning certain models, reallocating cash to profitable segments and reconsidering certain strategic partnerships.
In April, Ford surprised many analysts by announcing massive cost-cutting targets and plans to phase out many sedans in North America amid surging demand for sport-utility vehicles and other trucks.
Ford said in late September that the company was seeing profits slashed by $1billion due to tariffs imposed by Trump.
The company has resisted calls by Trump to relocate its production of hatchback wagons to the United States from China.
Citing Trump's new tariffs, Ford on August 31 said it was dropping plans to ship the Focus Active from China to America.
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Ford said in late September that the company was seeing profits slashed by $1billion due to tariffs imposed by Trump (seen at the White House on Monday)
Trump addresses trade and tariffs during United Nations speech
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Trump took to Twitter to declare victory and write: 'This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!'
But in a statement, Ford said 'it would not be profitable to build the Focus Active in the U.S.' given forecast yearly sales below 50,000.
The Trump administration slapped tariffs on $200billion worth of Chinese goods last month and is threatening to impose duties on virtually all of the goods China exports to the United States.
Trump has said signs of economic weakness in China and its slumping stock markets are proof of the effect U.S. tariffs are having on the Chinese economy.
Still, Beijing has remained defiant, vowing to stimulate domestic demand to cushion the blow from any trade shocks.
dailymail.co.uk
A dumbass failure in business. |
