Ford Motor Co. (NYSE:F) is giving some U.S. workers the option to either choose to leave with a severance benefit or complete a 4-6-week performance improvement program (PIP). The policy decision was made by the company after many employees with a tenure of eight or more years with Ford were identified as underperformers.
However, upon failure to improve desirably after the end of the PIP program, the employee opting for the program will not be eligible to receive any severance fee.
The company notified managers of the policy update via an internal email that was reviewed by The Wall Street Journal.
Ford, which has about 30,000 employees in the U.S., has been diligently reviewing white-collar performance in an effort to ethically cut costs by about $3 billion per year by 2026.
What is the Target Price for F Stock?
Currently, analyst consensus expectations for a forward-12-month target price is $17.17, which is a 28.42% growth from the current price level. The Ford stock is a Moderate Buy on Wall Street, based on seven Buys, four Holds, and one Sell.
Moreover, 17 hedge funds added about 2.2 million shares of Ford to their portfolio in the third quarter.
