Ford likely to cut workforce to reduce costs

With auto sales dropping for four consecutive months, Ford Motor Co. is believed considering personnel cuts to reduce the costs, local media reported on Tuesday.

News reports said after holding its annual meeting with shareholders on Thursday and meeting with Wall Street analysts on Friday, the Dearborn-based automaker has sent the signals that it is willing to make big changes to adapt to tougher market conditions, which may mean cutting its global workforce by 10 percent.

Ford has some 201,000 employees. A 10 percent reduction would mean a loss of 20,000 workers.

The U.S. automaker said in a statement released Monday night: "We remain focused on the three strategic priorities that will create value and drive profitable growth, which include fortifying the profit pillars in our core business, transforming traditionally underperforming areas of our core business and investing aggressively, but prudently, in emerging opportunities."

"Reducing costs and becoming as lean and efficient as possible also remain part of that work," the statement said.

Ford's profits dropped by 35 percent in the first quarter of 2017 as a result of rising costs, pricey recalls and a drop in fleet sales. It expects to rake in 9 billion dollars this year, down 1.4 billion dollars from 2016. Endit