Trump's tariffs have already cost Ford $1B; now it's planning layoffs

Ford will be making cuts to its 70,000-strong white-collar workforce in a move it calls a "redesign" of its staff to be leaner, have fewer layers, and offer more decision-making power to employees, the company announced.

The number of jobs that will be axed is unknown at this point.

“A lot of the (reorganization) is about making different choices about strategy,” Chief Financial Officer Bob Shanks told NBC News, adding that the goal isn’t just to slash spending but to improve the “fitness” of the company.

However, a recent report by Morgan Stanley estimates "a global headcount reduction of approximately 12 percent,” or 24,000 of Ford's 202,000 workers worldwide. "Such a magnitude of reduction is not without precedent in the auto industry,” analysts wrote in the investment note.

The decision is part of Ford's $25.5 billion reorganization plan, which includes slashing $6 billion in improved capital efficiencies. Ford CEO Jim Hackett, who cut more than 12,000 jobs as head of office furniture maker Steelcase, had been expected to make cutbacks even sooner, according to some observers. Hackett took over from Ford veteran Mark Fields when he was ousted from the company in May 2017.

Ford is lagging behind the competition, selling an anemic 32.8 vehicles per employee. Long-time rival GM puts out 52.7 vehicles per employee. But it's unclear exactly how improved efficiencies will impact potential job cuts.

Ford has already warned that President Donald Trump's auto tariffs have impacted the company to the tune of $1 billion, and the president’s trade policies threaten to play havoc with Ford’s ongoing reorganization, Shanks told NBC News.

Trump and Ford have been squaring off since well before the 2016 election, when then-presidential candidate originally threatened to impose hefty tariffs on vehicles Ford intended to start importing from a factory in Mexico. The carmaker eventually scrubbed that plan, but rather than return production to the U.S. it decided to move it to China.

Earlier this year, Ford said it would all but pull out of the U.S. passenger car market, citing the rapid shift in demand from sedans, coupes, and wagons to SUVs, CUVs and pickups. It was going to eliminate the conventional Focus models in favor of a crossover version, the Active. Now, with that model dropped, the still-popular Mustang will be the only remaining passenger car model in its line-up, with Ford relying in the future almost entirely on light trucks — such as the F-Series pickups that last year generated nearly all of its profits.

nbcnews.com/business/autos/trump-s-tariffs-have-already-cost-ford-1b-now-it-n917756

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Owning all those car manufacturing libs.

Sigh.

So, either they're shitcanning useless execs (good thing), or somebody doesn't know what "white-collar" means.

Henry must be spinning in his grave.

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Ford can't even into cars anymore. It's too hurd. Jej Fuck Ford.

anti-slide

Ford announced that in the USA by 2019 they would stop selling all cars except the Mustang. Another short sighted business plan. So I would expect layoffs in automotive plants in the USA. They already moved manufacturing of the Focus to China. It's odd but Toyota, Honda, Subaru and every other manufacturer in the world can manufacture and sell cars profitably in the USA. Why can't Ford.

Great news report, thanks to the ones who spread the truth!

real news

it still happened

ignore it all you want

it still happened

it still happened

ignore it all you want

it still happened

the bailout is over.

compete or fuck off, shitlibs.

Oh no well-to-do companies were forced to buy local steel at globally non competitive prices because we don’t have slant-eyes goblins mining for 20 hours a day

maybe close those factories in china and mexico? that should save them some money without impacting americans.

MAGA

they are competing. by ditching the snowflake americans who think they're indispensable

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Not good.

bumping legit

he'll put us all in the poorhouse

checked