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Report: Ford Restructuring Could Cut 25,000 Jobs
Ford Motor Co.’s $11 billion restructuring plan could eliminate 25,000 jobs worldwide, many of them in Europe, according to a Morgan Stanley.
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Ford Motor Co.’s $11 billion restructuring plan could eliminate 25,000 jobs worldwide, many of them in Europe, according to a Morgan Stanley.
Such a cutback would far surpass the 14,000-person reduction General Motors Co. anticipates for its facilities in North America, notes analyst Adam Jonas. His estimate follows a report in September by Britain’s Sunday Times that Ford will shed 24,000 jobs, mainly in Europe.
In October, Ford advised its 70,000 salaried employees that their ranks will be reduced by an unspecified number between now and the end of June. The company, which said earlier that about half the cuts will come in sales and marketing, told Bloomberg News yesterday that much of the reductions will occur outside North America.
GM and Ford say they need to take dramatic action now to survive the costs and market upheaval of the auto industry’s shift from traditional carmaking to electrification, tougher emission rules, self-driving vehicles and the rise of multiple transport options to personal vehicle ownership.
Jonas cautions investors that carmakers are prioritizing the risk to their “existential business model” over short-term earnings.
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