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William Maley

Ford News: Rumorpile: Ford Could Cut 10 Percent of Global Workforce

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Ford isn't doing so well at the moment as profits and stock prices are tumbling downward. To try and reverse this trend, the blue oval is considering cutting 10 percent of its global workforce.

Both the Wall Street Journal and Reuters have learned from their respective sources the cuts are part of a previously announced plan to slash costs by $3 billion. The cuts will mostly affect salaried employees, with Reuters reporting Ford will offer generous early retirement incentives. To give you an idea of how jobs are on the chopping block, Ford currently 200,000 employees. A cut of 10 percent means 20,000 people are out of a job.

"Reducing costs and becoming as lean and efficient as possible also remain part of that work. We have not announced any new people efficiency actions, nor do we comment on speculation," Ford said in a statement.

Source: Reuters, Wall Street Journal  (Subscription Required)


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Wow...I think the economy might well be headed for a speed bump of sorts...

...and it sounds like they will be dropping engineers and managers, not guys on the line they will rehire in a few months.

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expect to see things like production cuts from things like eliminating a third shift, or things such as that. I didn’t expect a number like 20,000. Especially while maintaining production.

 

I have to wonder, how bloated are the administrative and executive ranks at Ford. They can cut 20,000 and none of it in the production end. That sure doesn’t sound lean and efficient to me.

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Who said those ranks were bloated since 2009? Ford did have to make serious cuts in 2007-09 in employee numbers back then.  There may well be programs that can end or perhaps there are a few redundancies that can be made expendable.  The 20,000 number is mostly for Wall Street consumption.  We have no idea who Ford is going to fire at all.

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I would expect support positions to mgrs. and above will be reduced and consolidated as well as some engineers as software is allowing a person to do more with less thanks to modeling. Also there will have to be cuts on the assembly line as they automate newer models to have fewer people involved in building the auto.

Remember the movie Minority report and the auto line where not a single person is involved in the actual production of the auto anymore. That is the holy grail of production and I would expect cuts in people on the assembly line as they automate more.

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Remember, it's globally.  I'm sure Ford of Europe has a giant target on their back right now.... anything left in R&D in Australia as well.

GM isn't the only manufacturer in Europe that is/was underutilizing their capacity. 

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6 hours ago, Drew Dowdell said:

Remember, it's globally.  I'm sure Ford of Europe has a giant target on their back right now.... anything left in R&D in Australia as well.

GM isn't the only manufacturer in Europe that is/was underutilizing their capacity. 

And unlike GM, Ford is not looking to abandon their European operations to a more local competitor.  Then again, if the cuts are going to Europe, expect Ford to deal with some serious strikes and work stoppages across the Continent. 

As for Australia, what is left over there anyway?  It is not as if they produce anything for AUS/NZ anymore.

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6 hours ago, Drew Dowdell said:

Remember, it's globally.  I'm sure Ford of Europe has a giant target on their back right now.... anything left in R&D in Australia as well.

GM isn't the only manufacturer in Europe that is/was underutilizing their capacity. 

Agreed...

And as the guy here with a love/hate realtionship with Ford, I am unsure if I want to cringe or celebrate the news here. 

3 minutes ago, riviera74 said:

And unlike GM, Ford is not looking to abandon their European operations to a more local competitor.  Then again, if the cuts are going to Europe, expect Ford to deal with some serious strikes and work stoppages across the Continent. 

As for Australia, what is left over there anyway?  It is not as if they produce anything for AUS/NZ anymore.

The economy may well get ugly again...

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You are right Horse.  The economy will turn downwards as it always has.  Not sure what Dearborn is going to do when that happens.

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1 hour ago, riviera74 said:

You are right Horse.  The economy will turn downwards as it always has.  Not sure what Dearborn is going to do when that happens.

The more of sell lots of F150s and Mustangs and hope you can fleet enough Fusion and Focus may not work well for them.

Edited by A Horse With No Name

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Two words are your problem :Mark Fields.

 

Bodies drop every time this man is in charge. Ford might be struggling ( car sales are hurting them a bit), but getting rid of folks is not the way. They suffered a pretty good "brain drain", which they can ill afford now.

I find this interesting since they are still hiring a plenty on their website......

Just a show to make Wall Street happy........

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8 hours ago, daves87rs said:

Two words are your problem :Mark Fields.

 

Bodies drop every time this man is in charge. Ford might be struggling ( car sales are hurting them a bit), but getting rid of folks is not the way. They suffered a pretty good "brain drain", which they can ill afford now.

I find this interesting since they are still hiring a plenty on their website......

Just a show to make Wall Street happy........

And yet we have a  (former) member her who worked for Ford for his entire adult career that idolized the man.

I see the issues being external to Ford-the economy is soft, and the demand for car created from the last recession from when people held onto their clunkers until the economy improved has largely been satisfied.

Even Subaru, which seemingly can do no wrong at gaining amrket share, is struggling with greatly reduced profits.

But given the double whammy of a mostly satisfied market and a weakening economy, it may be tough for everyone to move metal.  GM and Ford have a lot of advantages in building cars given their size, but they also ahve a lot of plants to keep running and a lot of mouths to feed during a downturn...so their greatest asset is also their greatest liability.

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The entire auto industry is about to hit a sales slump.  There is a glut of used cars on the market and sales growth of new cars is going to stall.   This forward look is why Wall Street isn't cutting GM, Ford, and others any slack.   Tesla is still a niche product and their growth is going to come at great expense to other automakers, particularly in a down market, and that sort of prediction is why Tesla stock is up while GM and Ford are down.

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Over all the whole auto industry needs to be prepping for a downturn. We will see ugliness before growth again.

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7 hours ago, dfelt said:

Over all the whole auto industry needs to be prepping for a downturn. We will see ugliness before growth again.

Given that our country is do any number of highly irrational things at the moment, I am not filled with hope that we will avoid the ugliness...

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13 hours ago, Drew Dowdell said:

The entire auto industry is about to hit a sales slump.  There is a glut of used cars on the market and sales growth of new cars is going to stall.   This forward look is why Wall Street isn't cutting GM, Ford, and others any slack.   Tesla is still a niche product and their growth is going to come at great expense to other automakers, particularly in a down market, and that sort of prediction is why Tesla stock is up while GM and Ford are down.

Considering I just lost my auto industry job today, I tell you the poop is going to hit the fan quite soon....

There are some companies that are going to hurt, bad.........

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6 hours ago, daves87rs said:

Considering I just lost my auto industry job today, I tell you the poop is going to hit the fan quite soon....

There are some companies that are going to hurt, bad.........

Very sorry to hear that

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8 hours ago, daves87rs said:

Considering I just lost my auto industry job today, I tell you the poop is going to hit the fan quite soon....

There are some companies that are going to hurt, bad.........

Sorry to hear that, wishing you all the best in finding a new job.

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9 hours ago, daves87rs said:

Considering I just lost my auto industry job today, I tell you the poop is going to hit the fan quite soon....

There are some companies that are going to hurt, bad.........

Ouch, VERY sorry to hear that also!

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25 minutes ago, riviera74 said:

Sorry to hear that Dave.

 

Now, why is Mark Fields still running Ford again?

Probably because the board of directors sees that as the most rational option...

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Thank you guys......it does make me sad because I loved my job....

 

There has been a cut of parts from the automakers that we supplied, as some cut as much as 50% in the next six months!! Some have even been considering cutting whole models due to all the questions going on now. An don't even get me started about Tesla.....

 

I wish I could tell you a bit more, but I have to wait to get my package first.....

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Uncle Dave, aw man I am not happy to hear this news about your job.  I hope you are taken care of and can find something else very soon.  You are one of the good guys, as long as I've known you on here.

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