According to a report by Reuters, citing an email to Ford Motor Co employees, the auto maker intends to reduce its global salaried workforce by about 10% in relation with a broader restructuring aimed to save $600 million per year. Almost 7 000 jobs are to be cut by the end of August.
At the same time, a spokesperson for the company said that nearly 2 300 of the affected employees were located in the United States.
Ford shares closed lower for a second consecutive trading session in New York on Monday. The stock edged down 0.10% ($0.01) to $10.28, after touching an intraday low at $10.21, or a price level not seen since May 15th ($10.04).
Shares of Ford Motor Company have risen 34.38% so far in 2019 compared with a 13.30% gain for the benchmark index, S&P 500 (SPX).
In 2018, Ford Motor Co’s stock went down 38.75%, thus, it underperformed the S&P 500, which registered a 6.24% loss.
“To succeed in our competitive industry, and position Ford to win in a fast-changing future, we must reduce bureaucracy, empower managers, speed decision making, focus on the most valuable work and cut costs,” Fords Chief Executive Officer Jim Hackett said in an email to employees on Monday.
Hackett also noted that the reductions would include voluntary buyouts as well as layoffs. Affected employees in North America are to be notified as early as May 21st, the CEO said.
According to CNN Money, the 18 analysts, offering 12-month forecasts regarding Ford Motor Company’s stock price, have a median target of $10.00, with a high estimate of $14.00 and a low estimate of $6.00. The median estimate represents a 2.72% downside compared to the closing price of $10.28 on May 20th.
The same media also reported that 13 out of 22 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 6 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for Ford Motor Company (F) are presented as follows:
Central Pivot Point – $10.26
R1 – $10.47
R2 – $10.66
R3 – $10.87
R4 – $11.09
S1 – $10.07
S2 – $9.86
S3 – $9.67
S4 – $9.49