Sunday, Sep 19th 2021 10:18 PM

Market Digest Nigeria


Ford to Retrench 20,000 Workers Worldwide

Ford Motor Company is reportedly planning to cut about 10 percent of its global workforce in order to help increase its stock price, sources told The Wall Street Journal.

The paper reported on Monday that the company is expected to outline its plan as early as this week.

The move is reportedly part of the legendary automaker’s move to save $3 billion in 2017. The company has 200,000 employees globally, half work in the U.S.

“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 under performing areas of our core business and investing aggressively, but prudently, in emerging opportunities,” Ford said in a statement to The Journal.

“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,” the company said.

Ford didn’t confirm the report Monday night.

Ford’s shares have lost more than a third of their value since Mark Fields became CEO in 2014.

Electric car maker Tesla Inc. recently surpassed Ford in market value even though it sells far fewer vehicles.

Ford has been in the news recently. During the presidential campaign, then-candidate Donald Trump urged the company to reduce its Mexico production and invest in U.S. jobs.

The company agreed to scrap a factory in Mexico and add 700 jobs in Michigan with the money saved.

It is unclear if those jobs will be affected by the cuts.

Source: Fox News

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