Ford Motor Company last night announced that it would cut 1,750 of its white collar jobs in North America and slash its full-year profit target.
The new job cuts, to take effect by October 1, amounts to about 5% of its 35,000 salaried North American workers.
Ford also said it is considering job cuts outside North America. The news follows the elimination of 1,000 white-collar jobs in April.
The second most important US carmaker faces high costs and slumping sales, as demand for its flagship truck lineup has been hit by rising fuel prices.
Ford also said that it would eliminate management bonuses, and starting July 1 suspend its matching payments to salaried workers' retirement plans.
Ford said it expects to report a full-year profit in a range of $1.00-1.25 a share, down from prior estimates of £1.25-1.50 a share. In May, the Michigan-based company announced that US sales were down 11% to 283,994 vehicles.
However, Ford doubled its profit range to between 30 cents and 35 cents a share from its earlier target of 15 cents a share for the second quarter, which ends June 30. The company cited a lower tax rate and unexpectedly strong results from its financial unit for the improvement.
Analysts expect Ford to announce further job cuts in the coming weeks.
Ford Chief Financial Officer Don Leclair said in a statement that his company remains 'committed to improving our cost structure, optimising our global footprint, and making essential investments for the future.'
In April, Ford shocked financial markets when it announced a 38% drop in quarterly profits and reduced its earnings forecast from $1.75-1.95 a share to $1.25-1.50 a share.
