Ford may cut up to 2,000 jobs in North America as part of a plan to reduce costs to keep the car maker’s turnaround plan on track, a source familiar with Ford’s plans told Reuters on Friday.
The source reportedly said Ford executives met on Thursday and outlined the plan to reduce employee expenses by 10%. According to Reuters, while most of the cuts will be made through attrition, eliminating temporary workers and reducing overtime and travel, some involuntary job cuts will be necessary to meet the goal.
The 2,000 estimate was “directionally” correct, the source told Reuters, but the actual total will depend on how much Ford is able to save in other areas.
An announcement to employees was expected later on Friday, as Ford launches contract negotiations with the United Auto Workers union, the report added.
Reuters noted that Ford reported a 27% drop in second-quarter earnings on Wednesday due to slow sales and higher incentives in the United States and Europe and, while it stuck to its full-year earnings target of 70 cents a share, it also said it had intensified cost-cutting efforts to meet that goal.