Ford Motor Company (F) is planning to cut some of its 70,000 person-strong salaried workforce to try to eliminate bureaucracy, streamline its company, and revive its shares.
Shares of the Dearborn, Michigan-based automaker have fallen 27% year to date, reaching their lowest level since 2009 in the midst of the great recession, according to FactSet data. The stock hovered just above $9 per share on Monday in pre-market trading.
The move to reorganize the business was reported by the Detroit Free Press on Friday, noting that the company will target cuts to its "white collar" workforce specifically.
"You've heard (CEO) Jim Hackett talk about fitness and how we need to be more responsive, innovative, agile. Given that, it's really important when you consider how we modernize the workforce, skills and capabilities we need," Ford group vice president and chief human resources office told the paper. "This is designed to help us become more fit as a business."
The job cuts are a familiar modus operandi for Ford CEO James Hackett, who was brought on to steward the company in May 2017.
Ford Chairman Bill Ford Jr. was reported to have hired Hackett to supplant the short-lived tenure of Mark Fields in order to help cut costs and make the business more efficient.
"The clock speed at which our competitors are working requires us to make decisions at a faster pace," Reuters reported the chairman saying at the time. The company cut 1,400 staff shortly after that report.
Hackett built his reputation through workforce reduction and restructuring while at the Grand Rapid, Michigan-based furniture company Steelcase SCS.
During his 20-year tenure atop the largest office furniture maker in the United States, Hackett oversaw a turnaround for the company that helped the struggling company stay afloat and grow into the new millennium.
As Ford reports declining sales figures yet again, with sales falling 11.2% in September according to a company release, the "clock time" on Hackett's turnaround will need to tick a bit faster.
Shares are up slightly at 0.1% as of 8:20 a.m. in New York as the market awaits more details of the restructuring.