Ford (F) to Cut Salaried Workforce for Better Efficiency
Per Bloomberg, Ford Motor Company F has announced that it is mulling over downsizing its workforce in a bid to reorganize according to the company’s plans. The move is in sync with this Dearborn, MI-based auto giant’s strategy to lower costs for enhancing efficiency and jacking up its stock price. Notably, year to date, shares of the company have plunged 27%.
The second-largest U.S. automaker, currently not enjoying a robust health, has informed its employees that they will encounter unspecified job cuts as part of the company’s $11-billion restructuring program. Per reports, some of these lay-offs will be effected by lessening the company’s salaried staff. More details on job retrenchments are likely to emerge by second-quarter 2019. Regions mostly suffering on the monetary front such as, Europe, Asia and South America, are likely to witness the deepest slashes.
Ford’s Recent Ordeals
During second-quarter earnings release, Ford trimmed its 2018 profit forecast due to a sharp decline in the bottom line. At that point of time, chief executive officer Jim Hackett announced the company’s $11-billion cost restructuring initiative but kept details of the plan under wraps.
Crippled with its aging vehicles’ line-up, Ford’s U.S. sales in September dropped below the figures posted by General Motors Company GM, Toyota Motor Corporation TM and even Fiat Chrysler Automobiles N.V. FCAU. Investors are avoiding the Ford stock and its credit rating has been downgraded.
Currently, Ford has a Zacks Rank #4 (Sell) and shares its weak rank with General Motors'. While Toyota carries a Zacks Rank #3 (Hold), Fiat Chrysler has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ford, Toyota, General Motors and Fiat Chrysler have an expected long-term growth rate of 5.3%, 6%, 8.2% and 25.3%, respectively.
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