US-based multinational automobile manufacturer Ford has taken one major decision that has created ripples in its organization. The eminent automobile manufacturer has planned to reduce its global headcount by 3,000.

It is planning to cut 2,000 salaried positions and 1,000 agency-based jobs in several parts of the globe but mainly in the USA, Canada, and India. The company aims to lower operating costs that are impacting its growth.

“Building a great future requires reforms. It requires focus, clarity, and speed. And, as we have discussed in recent months, it means redeploying resources and addressing our cost structure,” said one of the company officials on this recent development.

Experts believe that fear of potential recession and inflation hovering near a 4o year high are other additional factors apart from the restructuring that caused this development. As of the end of last year, Ford had 186,769 employees globally, out of which 48.7%, of workers, were located in the U.S. Ford’s stock was down about 5% in afternoon trading Monday to $15.10 a share.

Under its new CEO Jim Farley, Ford is aiming to execute a massive transformation which includes plans to cut $3 billion in structural costs by 2026 and invest more in electric vehicles. “We worked differently than in the past, examining each team’s shifting work statement connected to our Ford+ plan. We are eliminating work, as well as reorganizing and simplifying functions throughout the business,” said one senior Ford official.