MarketWatch: Ford reportedly to cut up to 12% of salaried jobs

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Ford reportedly to cut up to 12% of salaried jobs

By Shawn Langlois, MarketWatch

SAN FRANCISCO (MarketWatch) -- Ford Motor Co. is looking to cut up to 12% of its salaried workforce in an effort to put its derailed overhaul back on track toward profitability, according to Wednesday report from a local Detroit newspaper.

Struggling to make up for the brutal selling climate in the U.S., Ford could be handing out pink slips to more than 2,000 white-collar workers, the Detroit News reported, adding that the Dearborn, Mich.-based automaker is also taking a hard look at merit pay increases.

Unlike previous buyout and early retirement offers, this round will be involuntary.

"Given the speed at which we are moving, we're not expecting to offer voluntary separation programs," Ford spokeswoman Marcey Evans said. She declined to comment on specifics but said that any moves to pare the workforce will be completed by August.

Standard & Poor's equity analyst Efraim Levy reiterated his hold rating on the shares, calling the news just another sign of pressure on the domestic auto industry.

"The company, while growing outside the U.S., is suffering, in our view, from a rapidly shifting market place and a dearth of fuel efficient cars that consumers would prefer over the likes of the Toyota Camry or the Honda Accord," he said. "Even with the layoffs, we see North American losses in '09."

Ford's stock fell 2 cents to close at $6.78, down about 20% in the past year. Year-to-date, however, the shares are up almost 1%.


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