Ford Motors to cut 10% of their white-collar work force
American auto giants Ford Motors continues to struggle in the competitive domestic market, which has been invaded by the Japanese manufacturers like Honda and Toyota with their ultra reliable products. The company has further announced possible job cuts of around 4000 in their salaried workforce. This comes to around 10% of their North American white-collar work force.
These cuts are a part of their larger restructuring plan. Most of these job cuts are expected to come in the first quarter of the next year. Ford would be cutting these jobs through attrition, layoffs, and the elimination of some agency and contract positions. The company had already announced more job cuts earlier this year, which applies to around 2,750 positions in the company.
Ford motors have making losses in their once dominated market of North America. They lost $284 million in the third quarter and its automotive division is in the red. This year alone, Ford has lost around $1.4 billion before taxes. Their shares are taking a beating in the market leading to around 40 percent drop in price since the end of 2004. They are also looking at closing certain manufacturing plants to cut losses in the near future.
They are not alone to be suffering. Both their American counterparts General Motors and Daimler Chrysler are also running in losses this current year.