The political atmosphere in the States is not exactly calm right now. The U.S. and China have locked horns, and it’s Ford that has to bear the brunt. Just a couple of weeks after Ford's CEO reported that the company was set to lose $1 billion because of the trade war, it is now being said that Ford may go on a layoff spree that could see over 20,000 people losing their jobs.

Heart Of The Matter

Ford was expecting a loss of $1 billion in profits because of the metal tariffs levied on steel and aluminum imports from China. And now, NBC News reports that Ford will also make its white-collar workforce lighter by almost 12-percent. Ford is in the midst of reorganizing itself and is trying to cut costs to get the company back on track. It is also investing in new technologies that could reap benefits. It’s not just Trump’s tariff; shots are fired from both the ends. The retaliatory tariffs from China are equally bad.

This Is Not The First Time

Trump and Ford have collided before as well. The automaker decided to shift the production of the Focus to Mexico when Trump threatened big tariffs. Ford also faced a lot of heat when it announced that all sedan and passengers cars will be eliminated, except for the Mustang, from its North American lineup. The automaker said it will concentrate on crossovers, pickup trucks, and SUVs. This was a little surprising, because Ford sold more than half a million sedans and cars in the U.S. in 2017. This resulted in Ford’s stock dropping below $9 after many years. With the massive lay-off reports now, expect people to lay-off their shares as well.

Editors Note: According to The Detroit News, Ford posted a $7.6 billion profit for 2017, so one could argue that a $1 billion loss wouldn't critically hurt the business. Does it feel like Ford is more interested in higher profits than keeping the loyal employees that keep the company running? Let us know what you think in the comments section below.

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