FORD MOTOR COMPANY ANNOUNCES WHITE COLLAR LAYOFFS.greenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread
Ford today announced 10% of it WHITE COLLAR workers are subject to Layoff. I didn't see the number's of Individuals but apparently it will be substantial.. This on the Heals of GM closing 1 plant & laying off thousands in Europe.. 2002~ Its ALL DOWNHILL from Here. Geno-Ca
-- Geno-Ca (email@example.com), August 17, 2001
Friday, 17 August, 2001, 13:23 GMT 14:23 UK
Ford cuts up to 5,000 jobs
Ford has confirmed that it plans to cut between 4,000 and 5,000 professional jobs by the end of this year. The company also sharply lowered its profits outlook. The company now expects to earn about $0.70 a share before exceptional costs such as redundancy payments.
This is well below Wall Street's consensus estimate of $1.20 and Ford's own previous forecast of earnings of $1.25-1.35 a share.
The job cuts will affect 10% of the carmaker's white collar workforce in North America and will cost the Detroit-based firm about $700m.
The company hopes to make the cuts through retirements and voluntary redundancies.
"The voluntary separation program is a difficult but necessary action," said Ford president and chief executive Jacques Nasser.
Falling sales, legal trouble
Ford, the world's second biggest car maker, has reported falling US sales this year.
Over the past 12 months, Ford has recalled 19.5 million Firestone tyres on its vehicles after the tyres were linked to about 200 deaths and 700 injuries in accidents.
It has seen its US market share wither under attack from foreign automakers, just as rival General Motors revived its truck business.
And it has faced a number of quality problems, from recalls to low scores on industry quality surveys.
The company will record the $1bn cost as a charge against its third quarter accounts.
In the second quarter of 2001, Ford lost $752m, including the cost of replacing 13 Firestone tyres, though analysts had expected worse and greeted the results favourably.
The group's worldwide vehicle sales during the second quarter of 2001 dropped 7% compared with the second quarter of 2000.
-- Martin Thompson (firstname.lastname@example.org), August 17, 2001.