Ford shares gain for a second straight session on Wednesday, auto maker to eliminate 1,400 salaried jobs in the US by the end of 2020

Ford Motor Co (F) announced on Wednesday that it intends to cut 1,400 salaried jobs in the United States by the end of 2020 as part of $11 billion restructuring initiative.

The US company said it would offer voluntary buyouts to workers who are eligible for retirement.

Ford shares closed higher for a second consecutive trading session in New York on Wednesday. The stock went up 1.76% ($0.12) to $6.95, after touching an intraday high at $6.97, or a price level not seen since August 27th ($6.98).

Shares of Ford Motor Company have retreated 25.27% so far in 2020 compared with a 10.84% gain for the benchmark index, S&P 500 (SPX).

In 2019, Ford Motor Co’s stock went up 21.57%, thus, it again underperformed the S&P 500, which registered a 28.88% gain.

Last year, the US auto maker cut 7,000 salaried jobs internationally and targeted 12,000 more layoffs and facility closures across Europe.

“We’re in a multiyear process of making Ford more fit and effective around the world,” Kumar Galhotra, Ford’s President, Americas & International Markets Group, said in an email to company employees, cited by Reuters.

“We have re-prioritized certain products and services and are adjusting our staffing to better align with our new work statement.”

The company has said it forecasts a pre-tax profit within the range of $0.5 billion to $1.5 billion during the third quarter and a loss during the fourth quarter. It is also striving to achieve a 10% operating margin in North America.

Analyst stock price forecast and recommendation

According to CNN Money, the 15 analysts, offering 12-month forecasts regarding Ford Motor Company’s stock price, have a median target of $7.50, with a high estimate of $9.00 and a low estimate of $4.90. The median estimate represents a 7.91% upside compared to the closing price of $6.95 on September 2nd.

The same media also reported that at least 13 out of 18 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 3 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News