Ford planning job cuts as part of reorganization plan

Ford planning job cuts as part of reorganization plan
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Ford Motor Company is planning to cut some of its staff over time as the company begins to reorganize its salaried workforce to become a more fit business.

NBC News reported on Monday that the plans are part of Ford's $25.5 billion reorganization plan that intends to cut costs by, among other things, making its staff leaner and reducing layers. 

“A lot of the [reorganization] is about making different choices about strategy,” Chief Financial Officer Bob Shanks told NBC News. 

A spokesperson for Ford told The Hill that the exact amount of employees that will be cut as part of this move is unknown. But a report from Morgan Stanley estimated a "global headcount reduction of approximately 12 percent” of its 202,000 workforce around the world, according to NBC.

But a report from Morgan Stanley estimated a "global headcount reduction of approximately 12 percent” of its 202,000 workforce around the world, according to NBC. 

"Such a magnitude of reduction is not without precedent in the auto industry,” the analysts wrote in the investment note, NBC News noted. 

The automaker has lagged behind competitors in sales and has also been adversely impacted by Trump's steel and aluminum tariffs, according to NBC.

A wide range of businesses were directly impacted when Trump slapped tariffs of 25 percent on imports of steel and 10 percent on imports of aluminum earlier this year. 

—Updated on Oct. 9 at 8:53 a.m.