Ford Is Preparing For Mass Layoffs After Losing $1 Billion To Trade Tariffs

2018 hasn’t been Ford’s best year. Its stock is down 29%, and President Trump’s tariffs have reportedly cost the company $1 billion, as the company is in the midst of a reorganization. The company is now announcing layoffs.

Yahoo News reports that CEO, Jim Hackett, is working to engineer a $25.5 billion restructuring of the automaker in hopes of cutting costs and remain competitive. But auto sales are down, and one reason is the trade tariffs that Trump has imposed on metals and other goods. According to Bloomberg, Hackett has said they have already cost the company $1 billion in profit and could do “more damage” if the disputes aren’t resolved quickly.

While the company hasn’t said how many jobs will be lost, a report from Morgan Stanley estimates “a global headcount reduction of approximately 12%,” or 24,000 of Ford’s 202,000 workers worldwide.” It’s reported that the job cuts are likely to come early next year.

Ford is struggling to keep pace with the rest of the industry. September was a bad month for U.S. auto sales—with aggregate sales down 7% however, Ford’s drop off was even more severe. Ford said the sales of its vehicles declined 11.2% last month, with sales of its best-selling F-Series pickup trucks down 9%.