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Ford to cut 4,000 jobs in India as part of restructuring

Shares of Ford Motor Co.
F,
+0.62%

fell 1.0% in premarket trading Thursday, after the automaker said it would cut about 4,000 jobs as it restructures its India operations, including immediately ceasing making vehicles for sale in the country. The company will also wind down operations at its Sanand vehicle assembly plant by the fourth quarter and at its Chennai engine and vehicle assembly plants by the second quarter of 2022. Ford said its India operations will still have the second-largest salaried workforce, and will still make engines for export and provide customer support services, aftermarket parts and warranty support. “As part of our Ford+ plan, we are taking difficult but necessary actions to deliver a sustainably profitable business longer-term and allocate our capital to grow and create value in the right areas,” said Chief Executive Jim Farley. “Despite investing significantly in India, Ford has accumulated more than $2 billion of operating losses over the past 10 years and demand for new vehicles has been much weaker than forecast.” Ford’s stock has dropped 15.8% over the past three months through Wednesday, while the S&P 500
SPX,
-0.13%

has gained 7.0%.

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