Ford Prepares Mass Layoffs After Losing $1 Billion Because of Trump’s Trade War

Ford Prepares Mass Layoffs After Losing $1 Billion Because of Trump’s Trade War, by Robert Wenzel.

Jim Hackett, Ford’s CEO, is working on a $25.5 billion restructuring of the automaker, hoping to cut costs and remain competitive, the Wall Street Journal reports. But auto sales are down, and one reason is the trade tariffs that Trump has imposed on metals and other goods. According to Bloomberg, Hackett has said they have already cost the company $1 billion in profit and could do “more damage” if the disputes aren’t resolved quickly.

Ford, the No. 2 U.S. automaker by sales, is making aggressive job cuts as part of that reorganization, NBC News reported. While the company hasn’t said how many jobs will be lost, a report from Morgan Stanley estimates “a global headcount reduction of approximately 12 percent,” or 24,000 of Ford’s 202,000 workers worldwide.”

Worldwide job losses — how many are in the US? I hear that some Chinese companies are suffering. Hope the governments come to a free trade agreement soon.