Ford will cut almost 10,000 jobs worldwide in a bid to cut costs by the end of the year, the company has told employees.
The cuts are part a drive at the world's second-largest automaker to meet its profit forecasts despite higher-than-expected costs from Detroit's ongoing price wars.
In the US Ford will cut 3,000 salaried jobs by releasing 1,700 contract workers and eliminating 1,300 vacant posts.
Mostly because of discounts averaging roughly $3,700 per vehicle sold in the United States, Ford has already been forced to raise its cost-cutting target for this year to $2.5 billion just to hit its earnings estimate of 70 cents a share, or roughly $1.3 billion.
Through June, Ford had cut $1.9 billion, mostly through reducing the cost of building current models and lowering its estimates for future warranty repairs. In July, it announced it would cut salaried worker costs 10 percent by the end of year, through every method possible, including job cuts.
The move came the same day Ford ratified new contracts with its unions allowing the company to close four plants employing nearly 4,600 people over the next four years.
Last year, Ford said it wanted to cut about 12,000 hourly jobs in North American as part of its turnaround plan aimed at generating $7 billion in pre-tax profits by mid-decade.
Ford has about 79,000 salaried employees worldwide, with about 50,000 in North America. In addition to the North American cuts, Ford's German arm is offering buyouts to 700 salaried workers and 1,000 hourly workers.