US Automaker Ford Motor is thinking to shrink workforce by 10% of headcount in North America and Asia. Ford to offer early retirements to head honchos by October 2017. But there is no intention to remove workforce from production units.
Fords cost reduction plan is the part of earlier announced cost reduction plan to cut costs by $3 billion as company noticed a sharp decline in auto sales in the US after 7 years of consecutive growth.
What’s in media from Ford Motor Company’s shrinking plan?
On Monday The Wall Street Journal published that Ford plans to cut 10 percent workforce of its 200,000 global workforces.
This is the strategy of Ford for this year to save on cost and maintain the profits on the higher side for company.
No information about the cut plans in other regions too. But people can expect more bytes to come soon.
Ford motor company remains focused on its core strategies to “drive profitable growth,” the company said in a statement.
“Reducing costs and becoming as lean and efficient as possible also remain part of that work,” it said in news.
“We have not announced any new people efficiency actions, nor do we comment on speculation.” – REUTERS
Cutting on operational costs is every company’s right to survive. Companies like Ford Motor Company are sitting on a huge workforce which is costing high operational losses. But extirpating people from the job on a larger scale is a tough task, as it leads to trigger unemployment.
It’s our suggestion, these big companies should start thinking to use the extra workforce for new product initiatives, the company can still increase profits from the new ventures. People on higher positions given their lives to the company, a happy retirement keeps smiles on many faces.