Ford Motor Company is reportedly planning to cut approximately 10 percent of the global workforce to help raise the purchase price of the shares, sources told The Wall Street Journal.
The paper reported on Monday that the company is expected to outline his plan as early as this week. The move is reportedly a part of the legendary automaker’s move to save $3 billion in 2017. The company employs about 200,000 workers worldwide, half in the U.S.
“We remain focused on the three strategic priorities that create value and profitable growth, including the strengthening of the earnings pillars in our core business, the transformation of traditionally low-performing areas of our core business and invest aggressively, but prudently, in new opportunities,” Ford said in a statement to The Magazine.
“Reducing costs and becoming as lean and efficient as possible, also a part of that work. We have not announced any new people efficiency actions, nor do we comment on speculation,” the company said.
Ford will not confirm the report Monday night.
Ford’s shares have lost more than a third of their value since Mark Fields became CEO in 2014. Electric car manufacturer Tesla Inc. recently surpassed Ford in market value, although it sells far less vehicles.
Ford has been in the news recently. During the presidential campaign, then-candidate Donald Trump urged Ford to reduce its Mexico production and investing in AMERICAN jobs. The company agreed to scrap, with a factory in Mexico, and add 700 jobs in Michigan with the money saved.
It is unclear whether that work will be affected by the cuts.
The Associated Press contributed to this report