By some estimates, the cutbacks could have been much more severe; one Wall Street analyst had projected as many as 20,000 job losses worldwide, the Detroit News reported.
CEO Jim Hackett, who announced the cuts Monday in a note to employees, has been stressing the need to reduce bureaucracy to make Ford more "physically fit" in the long term, said David Whiston, an auto industry analyst at Morningstar Research.
"White collar or salaried job cuts are not surprising when you hear management talking that way," Whiston said. "What can they do now to right the ship?"
The US auto industry has run into some turbulence after years of steady growth. Sales fell 5 per cent in 2017, according to CNN Business, after climbing more than two-thirds from 2010 to 2016. Foreign carmakers are streamlining their operations, too, by opening more US plants, thus cutting down on shipping costs and delivery times. Consumer tastes also have changed: Americans have shifted away from sedans and smaller cars to SUVs and trucks, a trend line that prompted Ford to retool a plant making Ford Focus compacts to accommodate new Ranger pickups.
"It's possible that with fewer models to produce, you need less people, too," Whiston said.
But even as automakers scramble to change course, it may not be enough. General Motors has laid off roughly 4500 workers since early 2017. In March, GM shut down production in Lordstown, Ohio, an area where manufacturing jobs have declined in recent years. About a quarter of America's metro areas have been similarly affected, many in the Rust Belt, according to data provided by the Federal Reserve Bank of New York.
Last week, President Donald Trump said he would hold off, for six months, on deciding whether to put import taxes on foreign cars. The auto tariffs would have had a particular impact on Europe and Japan. Trump announced the delay after a Commerce Department report found that rising imports of foreign autos and auto parts would have consequences for national security by threatening US automotive research and development.
Ford's announcement had impact on its stock, which was hovering around $10.25, down 0.33 per cent, in late afternoon trading.