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Ford Wants to Cut Labor Costs: Reports

The company reportedly wants to reduce salaried costs by 10% by the end of the year.
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Ford

(F) - Get Report

wants to reduce salaried labor costs by 10% by the end of the year, according to published reports, but the company hasn't decided on firm numbers for job cuts.

According to

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Reuters

and

Wall Street Journal

reports, the company hopes the cuts would occur through attrition, hiring stoppages and less overtime for workers. Another report that originated in

The Detroit Free Press

said the company was looking to eliminate 2,000 of the 45,000 white-collar jobs in its North American operations.

Earlier this week, Ford posted second-quarter earnings of $417 million, or 22 cents a share, on revenue of $40.67 billion, compared with $570 million, or 29 cents a share, on revenue of $42.21 billion a year ago.

Afterward, on a conference call, Vice Chairman Allan Gilmour told analysts that "there are no signs of an upturn this year and even into the early part of next year," in response to questions about the economic outlook and demand for new cars and trucks.

Ford also said it expects to lose about 15 cents a share in the third quarter, reflecting lower planned production volumes. The company said it "remains committed" to its full-year earnings guidance of 70 cents a share. Analysts were forecasting 67 cents for 2003.

In afternoon

New York Stock Exchange

trading, shares of Ford were rising 10 cents to $10.93.