Ford is denying reports that they could slash as many as 25,000 jobs as part of their massive restructuring program.
Earlier this week, Bloomberg reported that a Morgan Stanley analyst expected Ford Motor Company to slash 25,000 jobs over the next year as part of global corporate restructuring. Ford is currently in the midst of a restructuring plan that will take between three to five years to complete and cost the company upwards of $11 billion.
However, speaking to reporters on Tuesday, Ford CEO Jim Hackett denied that there would be any job losses as part of the restructuring. He stated that Ford had not provided Morgan Stanley with any sort of information to base their analysis on, and that the company would make an announcement regarding their workforce later in the week.
Ford spokesperson Karen Hampton also denied the rumors in a press statement:
"As we have said, we are undertaking restructuring activities that could result in potential EBIT charges of $11 billion, with cash-related effects of $7 billion, over the next five years,” said Hampton. “These actions will come largely outside North America. This includes the targeted and thoughtful approach we are taking to the redesign of our global salaried workforce.
"All of this work is ongoing and publishing a job-reduction figure at this point would be pure speculation."
Hackett did say that costs would be slashed as a result of Ford’s restructuring, up to $25.2 billion by the year 2022. Ford has already announced they would phase out passenger cars from their North American lineup beginning next year, leaving them only with the Mustang along with SUVs and pickup trucks.
Ford is also exploring partnership opportunities with rival Volkswagen. They’ve already signed an agreement to create the next generation of commercial vehicles, and its widely expected for the two to collaborate on the next generation of mid-size pickups and electric powertrains.
With Ford slashing cars from their lineup, it’s also possible that Volkswagen could share production capacity at Ford factories.