Ford Motor Company (NYSE:F) To Cut 700 Jobs Due To Plunge In Car Sales

The global reduction in the car sales after several issues has forced Ford Motor Company (NYSE:F) cut down jobs once again. As per the reports, the company has decided to lay off 700 workers after witnessing a below than expected car sales.

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Decision Is Applicable To Michigan Assembly Plant:

The decision is not about national work-force, but people working at the Michigan Assembly Plant which is located in the Detroit suburb of Wayne. The primary reason for this sudden layoff decision is said to be the slow sales of hybrid and small cars that this plant makes. After the jobs cut, the operational activities will be reduced from three shifts to two shifts. As per the reports, the decision is applicable starting from June 22, 2015. The information was made public by Ford’s spokeswoman Kristina Adamski on Thursday.

Ford decided to initiate the manufacturing activities at this plant in 2012. It mainly works on two cars i.e. C-Max hybrid and Ford Focus. It’s the same plant where U.S. President Barak Obama breezed in a few months back to check the progress of country’s auto industry in terms of smart and hybrid cars. The company had shut down the plant on a temporary basis during his visit as well for avoiding the overproduction these cars due to slow sales. This plant also makes the electric version of C-Max and Focus.

It’s the first time since 2009 when Ford Motor Company (NYSE:F) has decided to cut down a shift in any of its plant located in United States. It’s been a transition period for the American auto industry, which has been elevating upwards since the recession took place in 2009. Most of the companies have added thousands of workers to fulfill the increased demand for cars. Ford has also recruited more than 14,000 workers in U.S. plants over the last four years.

Culver Stinson

Culver Stinson

Stinson is US Markets Daily’s Senior Producer for News & Public Affairs.