Ford May Cut Global Workforce by 10%

Ford Motor Co. plans to reduce its global headcount by about 10%, or 20,000 employees, sources tell The Wall Street Journal.

The plan is likely to be announced as early as this week. Ford said last month when it reported reduced earnings that it intends to trim its annual costs by $3 billion through unspecified actions.

The Journal says the coming staff cuts will target salaried employees. About half the company’s worldwide workforce is located in the U.S. A Reuters source disputes the size of the cutback but agrees they are coming and says Ford will offer payouts to encourage early retirements.

Ford declined to comment specifically on the reports. But it says that “reducing costs and become as lean and efficient as possible” is a priority.

CEO Mark Fields faces pressure to boost profitability and the company’s stock price as Ford increases spending on advanced technologies, including electrification, vehicle connectivity and self-driving car systems. The company has cautioned that profits will shrink this year because of those factors and cooling sales in China and the U.S.