Ford Motor Co. is offering buyout packages to about 15,000 salaried workers in North America and Asia in a cost-saving move that is aimed at boosting profits amid slowing sales in the U.S. and China.
The offers target about 10% of the white-collar workforce in each region with the aim of trimming 1,400 employees from the global head count, the company said. Workers who accept the voluntary buyouts are expected to leave by Sept. 30.
The Dearborn, Mich., car maker is struggling to prove to Wall Street that it can continue to boost profits even as sales in the U.S. -- its largest and most profitable market -- begin to slide.
The staff reduction plan was put into place under former chief executive Mark Fields, who was ousted last month after failing to reverse a prolong stock price slump that frustrated shareholders and the company's board.
His replacement, Jim Hackett, has vowed to move faster and speed up decision making. He has already restructured the management team to reduce the number of executives reporting to him directly and aligned more functions under two global chiefs, Jim Farley and Joe Hinrichs.
The job cuts target specific departments, including communications, finance, government affairs and marketing.
The Wall Street Journal first reported Ford's plans to trim its salaried workforce in May.
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(END) Dow Jones Newswires
June 08, 2017 20:15 ET (00:15 GMT)