August 4, 2020

Ford to replace chief executive Jim Hackett

Ford has tapped Jim Farley to replace Jim Hackett as chief executive as the automobile industry grapples with the development of new technologies and economic fallout from the pandemic.

The management shake-up is the second this year for Ford, whose former head of its automotive division retired from the company in March with Mr Farley elevated to chief operating officer. The company had embarked on an $11bn restructuring as part of an effort to accelerate the development of new vehicles, including electric cars.

The company said Mr Hackett, the former office furniture executive who took the helm at Ford in 2017, plans to retire from the company in October. Mr Farley will serve as president and chief executive and join the board of directors.

“Jim Farley matches an innate feel for cars and customers with great instincts for the future and the new technologies that are changing our industry,” executive chairman Bill Ford said in a statement.

Shares in Ford rose 2.1 per cent in pre-market trading.

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Booking.com is laying off up to 25{6b17707e448e34f54d6d1a9e433426abf2addbba8938cba1c35a09fc0ada7803} of its workforce due to coronavirus downturn

A man looks at the website of Booking.com

Yuriko Nakao | Getty Images

Booking.com’s plans to lay off up to 25{6b17707e448e34f54d6d1a9e433426abf2addbba8938cba1c35a09fc0ada7803} of its global workforce as the Covid-19 pandemic continues to take a wide toll on travel, the company reported in a filing Tuesday. Booking.com has more than 17,000 employees, a company spokeswoman told CNBC.

Booking Holdings, Booking.com’s parent company, will finalize its plans and make announcements to employees on a country-by-country basis starting in September, according to the filing. Booking Holdings is also the parent company of other online travel companies like Kayak and Priceline, but the layoffs will only affect Booking.com, according to the filing.

The travel industry has continued to see dramatic drops in business due to the ongoing pandemic, and many believe a vaccine is needed for travel to widely return to normal. Booking, which operates travel websites such as Priceline.com, Kayak and other sites, reported a 51{6b17707e448e34f54d6d1a9e433426abf2addbba8938cba1c35a09fc0ada7803} drop in first-quarter gross travel bookings year over year. Booking is set to report second quarter 2020 earnings Thursday.

Shares of Booking Holdings were down less than a percent in premarket trading Tuesday. The company’s shares are down 19.65{6b17707e448e34f54d6d1a9e433426abf2addbba8938cba1c35a09fc0ada7803} percent year to date. 

“The Covid-19 crisis has