Ford Motor Company (NYSE:F) is considering to significant changes to its senior management team aimed a stock price decline, the Wall Street Journal reported Sunday.
The automaker could shuffle executives who were hired or rose to prominence under former CEO Alan Mulally, the Journal reported, citing people familiar with the matter.
Investor seems unhappy with Ford’s stock which is down over 10% so far this year. During the last three months, the stock has declined 14.34%. The automaker’s share price has plummeted 40% since Mark Fields became CEO in July 2014.
During the recent annual meeting, Ford Executive Chairman Bill Ford that he and the board are frustrated by the stock decline. “We’re frustrated, but our business is performing well. We’re making investments for both today and tomorrow, and I believe that’s the right thing to do,” he told investors.
Ford Cutting Jobs to Boost Share Price
Last week, Ford Motor announced that it will cut 1,400 salaried jobs in North America and Asia in a bid to rescue its sagging stock price.
The automaker plans to offer voluntary early retirement and other financial incentives to the affected employees in sales, marketing, and human resources departments. The process is expected to be completed by the end of September.
“We remain focused on the three strategic priorities that will create value and drive profitable growth, which include fortifying the profit pillars in our core business, transforming traditionally underperforming areas of our core business and investing aggressively, but prudently, in emerging opportunities,” the automaker said in an email sent to employees. “Reducing costs and becoming as lean and efficient as possible also remain part of that work.”
On Friday, Ford Motor Company (NYSE:F) announced that it will invest $350 million in its Livonia Transmission Plant. The investment will create 800 hourly jobs to support the production of the new transmission. In a statement announcing the plans, the automaker said it expects to begin adding jobs late this year.
