Ford Motor Company has announced a significant reduction in manager stock bonuses as part of its strategy to cut costs and improve financial performance. The decision, revealed on February 18, 2025, comes as the automaker faces increasing pressure to streamline operations and enhance profitability in a competitive market.

The move is expected to save Ford hundreds of millions of dollars annually, with the funds redirected toward research and development (R&D) for electric vehicles (EVs) and autonomous driving technologies. “This decision is necessary to ensure we remain competitive and continue to innovate in a rapidly evolving industry,” said Ford CEO Jim Farley.

While the reduction in stock bonuses has sparked concerns among managers, Ford has emphasized its commitment to maintaining competitive compensation packages. The company also plans to introduce performance-based incentives to align employee goals with long-term corporate objectives.

Analysts have welcomed the move, noting that it reflects Ford’s proactive approach to addressing financial challenges and positioning itself for future growth.