As he prepares to leave the White House for a rally in Montoursville, Pennsylvania, later today, President Donald Trump was hit with some very bad news coming from Ford Motor Company: It will layoff 7,000 white-collar workers worldwide, with 500 of those in the U.S.
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Ford is cutting 7,000 white-collar jobs, or about 10% of its salaried staff worldwide, as part of a cost-cutting effort it says will save the company about $600 million a year.
Ford says workers will begin to be notified of cuts starting Tuesday, and the terminations will be completed by the end of August. About 2,400 of the jobs cuts are in North America, and 1,500 of the positions were eliminated through a voluntary buyout offer.
The layoffs are part of a larger restructuring plan Ford has been working on:
Ford has been making cuts over the past several months as part of a massive restructuring that is expected to cost thousands of jobs across the globe. The company committed last year to spending $11 billion to reshape its business, hoping to boost sales overseas and modernize its fleet of vehicles by focusing more on electric and autonomous driving tech.
The news from Ford could not possibly come at a worse time for the president, who is facing a very uncertain re-election bid in 2020. His already low approval rating, combined with revelations that he may have obstructed justice during the Russia investigation conducted by Special Counsel Robert Mueller, has him reeling while most of the energy and excitement surround the 2020 race seems to be on the Democratic side, with front-runner Joe Biden leading him by double digits in several battleground states.
American manufacturing is also facing new challenges due to Trump’s ongoing trade and tariff war with China, which is a major market for American automakers. After Trump imposed a new set of tariffs on Chinese products, China responded with retaliatory actions which are already being felt in Rust Belt states such as Michigan, Ohio, Pennsylvania, and Wisconsin. Those Midwestern states were key to Trump’s narrow 2016 victory over Hillary Clinton.
If Ford is the harbinger of bad economic news yet to come, Trump had better be very worried.
Featured Image Via CNBC