A day after reports saying Ford was planning a significant layoff of its global workforce, the company has cleared the air on the cuts.
In a statement issued today, Ford announced that it would be cutting 10 percent of its salaried employees in North America and Asia - roughly 1,400 employees. Ford says the cuts are needed to reduce costs as the company readies for a slowdown in sales and investing more into new technologies.
"We remain focused on the three strategic priorities that will create value and drive profitable growth, which include fortifying the profit pillars in our core business, transforming traditionally underperforming areas of our core business and investing aggressively, but prudently, in emerging opportunities," the company said in a statement.
According to Automotive News, Ford will offer workers voluntary early retirement and special separation packages to reach their goal. Two-thirds of the cuts will come from the North America region.
As we reported yesterday, the job cuts are part of Ford's plans to cut costs by $3 billion.
Source: Automotive News (Subscription Required)