Updated from 3:01 p.m. EDTFord Motor ( F) said Thursday it will slice its dividend and directors' compensation in half as the struggling automaker continues efforts to slash costs. The dividend step follows a similar move by Ford's larger rival, General Motors ( GM), which in February halved its dividend under pressure from shareholder activists and workers to adopt a policy of "shared sacrifice." Ford's dividend cut represents a sacrifice from the Ford family, which owns a large stake in the company and controls a majority of the voting rights, but it's also a step toward cutting the company's bloated cost structure. Ford plans to pay a third-quarter dividend of 5 cents a share, down from its 10-cent dividend for the second quarter. The new dividend is payable Sept. 1 to holders of record Aug. 2. "Strong liquidity is an important enabler of our ongoing turnaround efforts, and this action will make an important contribution," said Chairman and Chief Executive Bill Ford in a statement. In addition, the company said its board members voluntarily moved to cut their fees in half. "Our directors are well aware of the difficulties and sacrifices involved in turning around our company," Ford said. "They have underscored this by voting to reduce their own compensation." Ford has been seeking to slash costs after spiraling into the red last year as foreign-based manufacturers with lower cost structures took market share, all while soaring fuel prices depleted demand for Detroit's gas-guzzling SUVs. The No. 2 U.S. automaker unveiled a restructuring plan dubbed "Way Forward" earlier this year that calls for closing 14 North American factories and slashing up to 34,000 jobs over the next six years. With roughly Ford's 1.8 billion shares outstanding, the dividend cut adds up to a savings of about $361 million.