Ford Prepares for Mass Layoffs After Losing $1 Billion to Trump's Trade Tariffs, Report Says
Ford is having a bad year in 2018. Its stock is down 29%, and the tariffs imposed by President Trump have reportedly cost the company $1 billion, as the company is in the midst of a reorganization. Now, the company is announcing layoffs.
Jim Hackett, Fords CEO, is working to engineer a $25.5 billion restructuring of the automaker, hoping to cut costs and remain competitive, the Wall Street Journal reports. But auto sales are down, and one reason is the trade tariffs that Trump has imposed on metals and other goods. According to Bloomberg, Hackett has said they have already cost the company $1 billion in profit and could do more damage if the disputes arent resolved quickly.
Ford, the No. 2 U.S. automaker by sales, is making aggressive job cuts as part of that reorganization, NBC News reported. While the company hasnt said how many jobs will be lost, a report from Morgan Stanley estimates a global headcount reduction of approximately 12 percent, or 24,000 of Fords 202,000 workers worldwide.
While reports have indicated that the job cuts are likely to come early next year, The Kansas City Star reported Tuesday that Ford has temporarily halted production of transit vans in Claycomo, Mo. The move is intended to prevent a build-up in Fords inventories of the vans, but it will leave 2,000 workers idle between Oct. 22 and Nov. 4.
Despite news of the layoffs, Fords stock closed down 3.4% Tuesday.
http://fortune.com/2018/10/09/ford-stock-today-layoffs-trump-trade-tariffs/
at140
(6,110 posts)he is constantly bragging about the record low unemployment among blacks, Hispanics, and all the other BS. So those laid off Ford workers should have no trouble finding new jobs?
marble falls
(57,079 posts)dalton99a
(81,455 posts)A good life awaits
Haggis for Breakfast
(6,831 posts)We intend to put you out of a job soon too.