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Ford (F) May Slash Workforce in North America and Asia by 10%
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To reduce costs and improve profitability, Ford Motor Company (F - Free Report) plans to lay off approximately 10% of its salaried employees in North America and Asia. The company currently has a global workforce of 200,000.
In order to reduce cost, the company had previously announced plans to cut costs up to $3 billion in 2017 and improve profitability in 2018. The company expects the aforesaid job retrenchment to contribute towards this goal. It is also rumored that Ford may offer early retirement incentives instead to reduce its salaried personnel by Oct 1 rather than cut jobs directly.
The company is eyeing profitable growth through cost cuts or stable spending, new product launches and rising SUV ownership.
Earlier, Ford announced investments worth $1.2 billion in three of its manufacturing facilities in Michigan. This is expected to help the company strengthen its leadership in trucks and SUVs as well as support the company’s expansion to an auto and mobility company. Moreover, the company had also revealed plans to create or retain 130 jobs.
Ford is working in various major global cities to develop mobility solutions for the unique transportation challenges faced by the regions. The company has acquired several companies to promote growth. It is also focused on product launches, global expansion plans, efficient capital deployment and development of autonomous vehicles.
However, regional challenges, such as continued losses in South America and Brexit-related concerns, along with frequent product recalls and rising structural expenses are headwinds faced by the company.
Ford’s shares have has underperformed the Zacks categorized Auto Manufacturers-Domestic industry over the last three months. The company’s shares lost 13.04% over this period while the industry witnessed a 2.73% decline. Increasing recalls, concerns in certain end markets and lower-than-expected earnings are adversely affecting share performance.
Lear has an expected long-term growth rate of 7.13%.
Fiat has an expected long-term growth rate of 22.38%.
Fox Factory has an expected long-term growth rate of 16.48%.
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Ford (F) May Slash Workforce in North America and Asia by 10%
To reduce costs and improve profitability, Ford Motor Company (F - Free Report) plans to lay off approximately 10% of its salaried employees in North America and Asia. The company currently has a global workforce of 200,000.
In order to reduce cost, the company had previously announced plans to cut costs up to $3 billion in 2017 and improve profitability in 2018. The company expects the aforesaid job retrenchment to contribute towards this goal. It is also rumored that Ford may offer early retirement incentives instead to reduce its salaried personnel by Oct 1 rather than cut jobs directly.
The company is eyeing profitable growth through cost cuts or stable spending, new product launches and rising SUV ownership.
Earlier, Ford announced investments worth $1.2 billion in three of its manufacturing facilities in Michigan. This is expected to help the company strengthen its leadership in trucks and SUVs as well as support the company’s expansion to an auto and mobility company. Moreover, the company had also revealed plans to create or retain 130 jobs.
Ford is working in various major global cities to develop mobility solutions for the unique transportation challenges faced by the regions. The company has acquired several companies to promote growth. It is also focused on product launches, global expansion plans, efficient capital deployment and development of autonomous vehicles.
However, regional challenges, such as continued losses in South America and Brexit-related concerns, along with frequent product recalls and rising structural expenses are headwinds faced by the company.
Ford Motor Company Price and Consensus
Ford Motor Company Price and Consensus | Ford Motor Company Quote
Price Performance
Ford’s shares have has underperformed the Zacks categorized Auto Manufacturers-Domestic industry over the last three months. The company’s shares lost 13.04% over this period while the industry witnessed a 2.73% decline. Increasing recalls, concerns in certain end markets and lower-than-expected earnings are adversely affecting share performance.
Zacks Rank & Key Picks
Ford currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the auto space include Lear Corporation (LEA - Free Report) , Fiat Chrysler Automobiles N.V. and Fox Factory Holding Corp. (FOXF - Free Report) . All the three stocks hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lear has an expected long-term growth rate of 7.13%.
Fiat has an expected long-term growth rate of 22.38%.
Fox Factory has an expected long-term growth rate of 16.48%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>