Ford Motor Co. plans to cut 10 percent of its salaried jobs in North America and Asia Pacific this year in an effort to boost profits.
The company says it will offer voluntary early retirement and separation packages to its workers. It expects 1,400 positions to be affected by the end of September.
“We remain focused on the three strategic priorities that will create value and drive profitable growth, which include fortifying the profit pillars in our core business, transforming traditionally underperforming areas of our core business and investing aggressively, but prudently, in emerging opportunities. Reducing costs and becoming as lean and efficient as possible also remain part of that work, including plans to reduce 10 percent of our salaried costs and personnel levels in North America and Asia Pacific this year, using voluntary packages,” read a statement from Ford.
Ford says its European and South American operations have already cut workers and won't be affected.
The company says it will release more details to employees in June.
Ford's stock price has fallen nearly 40 percent over the last three years as investors worry that U.S. sales are peaking. Ford is also spending heavily on future technology, like self-driving and fully electric cars.