Ford’s stock has been hovering around a five year low for far too long for the executives’ liking. CNBC reports that, because of stagnating profits, the company is planning to cut jobs to improve the bottom line. The good news is that hourly employees won’t likely be affected as the cuts target salaried positions in North America and Asia.
UPDATE: Ford is cutting 10 percent of its salaried workers, not its total workforce as was previously stated. 1,400 jobs are being cut according to Automotive News.
While Ford has not confirmed the coming cuts, Bill Ford was asked about the company’s stock prices and said:
“We’re as frustrated as you are by the stock price. The Ford family wants the stock to go up. Our net worth is tied up in this company, of course we want it to go up.”
Ford’s stock is down 36 percent since July 2014, and they expect profits to fall by as much as 50% in the coming quarter, according to CNN Money. Cutting labor costs is Ford’s quickest way out of this slump, but that doesn’t make it any easier on all of the workers about to be out of a job.