Ford Motor Co. is looking at cost cuts, including personnel cuts as high as 10 percent to its global operations according to one report, as the company looks to shore up its lackluster stock performance and fortify its slipping profits.
The Wall Street Journal reported Monday night those cuts could target salaried employees, and reduce the automaker’s global workforce by approximately 10 percent. But a ranking source told The Detroit News that number seemed high.
The company is taking a “hard look” at cost-cutting but no official decision has been made, said the source, who spoke on the condition of anonymity because they were speaking about company business that has not been announced.
Ford has previously signaled it plans to reduce operating costs. Ford Chief Financial Officer Bob Shanks said in September during Ford’s Investor Day that the company expects to cut “about $3 billion annually in 2016, 2017 and 2018” to support Ford’s investments and expansions into capital-heavy investments in the areas of electrification, autonomy and mobility, which Ford calls “emerging opportunities.”