Ford cuts workforce amid EV push

Spanish Market: Metals
22/08/22

US automotive manufacturer Ford plans to eliminate around 3,000 employees this week in a move to cut costs as it transitions to focus on electric vehicles (EVs).

The Michigan-based automaker said it will reduce its salaried workforce by about 2,000 employees, as well as reduce contracted workers by about 1,000 beginning this week, according to an internal memo made by chief executive Jim Farley and chairman Bill Ford.

Eliminations will range across its operations in the US, Canada and India, with the reductions following significant restructuring in its operations outside of North America over the last few years.

At the crux of the cuts is the company's current cost structure, which Farley and Ford called "uncompetitive."

Along with cutting certain positions, the company is also reorganizing and simplifying functions throughout its divisions with more specifics expected to emerge shortly.

"Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century," the pair said in the memo.

The layoffs were hinted at in late July after Farley announced on an earnings call his plans to reshape and simplify the company's internal combustion engine (ICE) business.

Ford has been aggressively investing in EV full-size trucks and vans, while also investing in midsize ICE pickup trucks and sports cars.

By Brad MacAulay

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