Ford Motor to cut costs by cutting on sales job

Ford Motor to cut costs by cutting on sales job

American Auto Giant Ford has announced that it would be cutting jobs in its sales department to cut costs and control the high costs of manufacturing vehicles. It is also planning to consolidate its Ford and Lincoln Mercury marketing divisions to achieve the same goal of getting back to high profitability and remove the bottlenecks in their growth.

Ford is the second largest US automaker in the world and they would now be reducing the number of regions covered by its field offices from 17 to 11 as part of the plan. These offices are responsible for selling Ford Vehicles to the dealerships and handle the marketing of the brand name in the local markets.

Some of the targeted markets for these cuts are Boston, Philadelphia, Cincinnati, Minneapolis-St. Paul, and Seattle where the company would now be keeping miniscule staff. The exact number of planned job cuts has not been revealed by the company thought the plans are to remove at least 1,750 more jobs before the end of this year. This is almost around 50% of the total workforce the company has on its sales, marketing, and service staff.

The decision to cut staff in the sales departments is part of its larger cost-cutting effort. The company’s profits fell down to around just 19% in the second quarter of the current fiscal year. In fact, the sales of the Ford vehicles were flat for the first seven months of this year.