Per Bloomberg, Ford Motor Company (F - Free Report) has announced that it is mulling over downsizing its workforce in a bid to reorganize according to the company’s plans. The move is in sync with this Dearborn, MI-based auto giant’s strategy to lower costs for enhancing efficiency and jacking up its stock price. Notably, year to date, shares of the company have plunged 27%.
The second-largest U.S. automaker, currently not enjoying a robust health, has informed its employees that they will encounter unspecified job cuts as part of the company’s $11-billion restructuring program. Per reports, some of these lay-offs will be effected by lessening the company’s salaried staff. More details on job retrenchments are likely to emerge by second-quarter 2019. Regions mostly suffering on the monetary front such as, Europe, Asia and South America, are likely to witness the deepest slashes.
Ford’s Recent Ordeals
During second-quarter earnings release, Ford trimmed its 2018 profit forecast due to a sharp decline in the bottom line. At that point of time, chief executive officer Jim Hackett announced the company’s $11-billion cost restructuring initiative but kept details of the plan under wraps.
Crippled with its aging vehicles’ line-up, Ford’s U.S. sales in September dropped below the figures posted by General Motors Company (GM - Free Report) , Toyota Motor Corporation (TM - Free Report) and even Fiat Chrysler Automobiles N.V. (FCAU - Free Report) . Investors are avoiding the Ford stock and its credit rating has been downgraded.
Currently, Ford has a Zacks Rank #4 (Sell) and shares its weak rank with General Motors'. While Toyota carries a Zacks Rank #3 (Hold), Fiat Chrysler has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ford, Toyota, General Motors and Fiat Chrysler have an expected long-term growth rate of 5.3%, 6%, 8.2% and 25.3%, respectively.
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