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Now, Ford Plans Job Cuts to Curb Costs

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The Michigan-based automaker plans to cut thousands of jobs in the near future. Let’s learn more about Ford’s plan in this article.

Ford Motor Co. (NYSE: F) plans to cut up to 8,000 jobs in the next few weeks as it seeks to lower costs and focus on the production of EVs, Bloomberg News reported, citing people with knowledge of the matter.

The job cuts are expected to impact people working in the Ford Blue unit as well as the company’s salaried workforce. The layoffs, which are expected to begin in summer, are likely to be in phases.

A spokesperson at Ford said, “To deliver our Ford+ transformation and lead this exciting and disruptive new era of electric and connected vehicles, we remain focused on reshaping our work and modernizing our organization across all automotive business units and across the company.”

“As part of this, we have laid out clear targets to lower our cost structure to ensure we are lean and fully competitive with the best in the industry,” the spokesperson added.

Meanwhile, the Michigan-based company is scheduled to hold a conference call on July 21 to update its investors about how it plans to manufacture 600,000 EVs per year by 2023 and over two million by the end of 2026.

Wall Street’s Take on Ford

Ahead of Ford’s second-quarter results, which are to be released next week, UBS (NYSE: UBS) analyst Patrick Hummel maintained a Hold rating on the stock and lowered the price target to $13 from $20.50 (2.1% upside potential).   

The analyst said, “We expect Ford to deliver $2.7 billion adjusted EBIT in Q2 versus $2.2 billion achieved in Q1, corresponding to 7.4% adjusted EBIT margin (up 90 basis points quarter-over-quarter).”

On TipRanks, the stock has a Moderate Buy consensus rating based on six Buys, 10 Holds, and one Sell. Ford’s average price target of $17 reflects upside potential of 33.5% from current levels. Over the past year, shares of the company have lost 8.8%.

Bloggers Are Bullish on Ford

TipRanks data shows that financial bloggers are 89% Bullish on Ford, compared to the sector average of 63%.

What’s Ahead for Ford?

The automaker is scheduled to announce its second-quarter results on July 27. The Street anticipates EPS of $0.45, higher than the year-ago figure of $0.13. Over the last two years, Ford has surpassed earnings expectations in almost all quarters. Shares of the company, which have lost nearly 41% year-to-date, could receive a boost if the company manages to surpass expectations in the second quarter as well.

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