Ford Motor Co announced on Wednesday that it is looking forward to slash 1,400 salaried employees in Asia and North America through financial incentives and voluntary early retirement. The latest move is a part of the company’s effort to improve its stock value and limit expenses.
The second biggest automaker said the layoffs would represent 10 percent of a group of 15,000 managerial positions and other non-production employees and would cut the labor expenses for that category by 10 percent.
The announced cuts would not affect employees in the product development and Ford Credit unit. The company’s Europe and South America will also stay unaffected.
Ford plans to provide financial incentives to encourage salaried workers to exit voluntarily by the end of the third quarter. Spokesman Mike Moran said the company will achieve its layoff targets with the help of voluntary offers.
The automaker said the voluntary incentives proposals will be sent to nearly 9,600 salaried employees in the United States.
In a similar fashion, Ford last year slashed hundreds of white-collar positions in Europe, trimming annual costs by $200 million.
Despite strong efforts to reduce costs and boost profit, investors are concerned about sluggish sales and increasing number of autonomous cars and ride sharing services that could dominate the industry in the future.
Ford reported in 2015 that it is spending $4.5 billion to launch 13 electric and hybrid automobiles by the end of this decade.
Leading U.S automakers, including Ford, are under immense pressure from United States President Donald Trump to increase jobs in the U.S. In response, Ford announced earlier this year that it is abandoning a planned Mexico plant and instead adding 700 jobs in Michigan.
Automakers are reducing costs amid slowing auto sales. Ford in April revealed plans to save $3 billion in costs this year.
Competitor General Motors Co (GM) has slashed over 4,000 workers in the United States since November 2016. GM also closed some unproductive operations in Asia and Europe.