Ford to cut 3,000 jobs amid restructuring
Ford Motor plans to cut about 3,000 jobs, a move that will affect salaried and contract workers, according to an internal email sent to employees.
Automotive News was the first to report the news after reviewing the email. TechCrunch, which has confirmed the layoffs, will update the story as more information becomes available.
The job cuts, which many have anticipated since Ford launched its restructuring efforts, will affect employees throughout its global operations. However, most of the cuts will be in the U.S., Canada and India.
CEO Jim Farley has spoken publicly about the potential for job cuts in recent months. During the company’s second-quarter earnings call, Farley foreshadowed coming layoffs. Bloomberg also reported in July that Ford could cut up to 8,000 jobs.
“We absolutely have too many people in certain places. No doubt about it. And we have skills that don’t work anymore, and we have jobs that that need to change,” Farley said in July 2022. “We have lots of new work statements that we’ve never had before. We are literally virtually reshaping our company, like every part of our company. And you know the ICE business, we want to simplify it, we want to make sure the skills we have and the works statements we have are as lean as possible. We know our costs are not competitive at Ford. That’s what I mean by we are not satisfied.”
The jobs cuts come amid a restructuring and cost-cutting effort that launched early this year. In March, Ford announced a restructuring that split its electric vehicles and internal combustion engine (ICE) vehicles into two units. Ford Model e is dedicated to EVs, software and connected vehicle technology and Ford Blue continues to build out internal combustion vehicles to drive profitability. Ford also cfeated a third unit called Ford Pro that provides commercial and government customers with work-ready ICE and electric products and services to manage fleets.