© Babu / Reuters
The news agency reports that by October 1, Ford will lay off only salaried workers offering them generous early retirement incentives. The move will reportedly not affect the hourly workforce.
The cuts are part of Ford's plan to save $3 billion, as car sales have dropped after seven years of consecutive growth since the end of the global crisis.
Ford declined to comment on the matter, but said its goal is to "drive profitable growth."
"Reducing costs and becoming as lean and efficient as possible also remain part of that work," the car maker said in a statement.
"We have not announced any new people efficiency actions, nor do we comment on speculation," the statement added.
Ford has 200,000 employees globally, half of which work in North America.
Deep job cuts in the United States could invoke a political backlash from the White House, as President Donald Trump has repeatedly urged automakers including Ford and GM to add US jobs.
In March, Ford announced that it would invest $1.2 billion in a Michigan auto plant instead of building a $1.6 billion car factory in Mexico.
"Major investment to be made in three Michigan plants," Trump triumphantly posted on Twitter. "Car companies coming back to U.S. JOBS! JOBS! JOBS!"
STATEMENT of any corporation you will see that the biggest cost is employee payroll. If you are losing money instead of making, or profits are reduced, "alarm bells" start ringing.
First of all, executive bonuses are not standard. They depend on the executive's performance. Secondly any corporation, at least the good ones, hand picks most executives as it depends on them to run the entire corporation. Thirdly you won't believe how many executives have been "executed" (fired) so I made a suggestion to change the term from Chief Executive Officer to Chief Operating Officer which was partially adopted.
So unskilled workers that are not so valuable to any corporation can easily lose their jobs, but higher up the ladder this doesn't happen so easily. Thing is, higher up the ladder the difficulty of the job, along with stress and responsibility also rise. I hope I have answered the question.