Based on an internal memo given to staff, Ford Motor (NYSE:F) plans to eliminate around 3,000 positions, a decision that impacts both salaried and contract staff. This is according to the news shared by TechCrunch.
The layoffs, which many had predicted since Ford began its reorganization efforts, will have an impact on staff members across all of its international operations. The U.S., Canada, and India will experience most of the losses, though.
In recent months, CEO Jim Farley has publicly discussed the possibility of employment layoffs. Farley hinted at impending layoffs on the company’s earnings call during the second quarter. Additionally, according to Bloomberg, Ford may eliminate up to 8,000 workers in July.
There are simply too many people in some areas, without question. Furthermore, we have professions that need to alter outdated abilities, according to Farley in July 2022. There are several new work statements that we don’t yet have. We are practically and figuratively reinventing our business in every way. And as you are aware, we want to streamline the ICE company and ensure that our skills and work statements are as concise as feasible. At Ford, we are aware that our prices are too high. We are not content, and I mean that in that sense.
The job layoffs coincide with a reorganization and cost-cutting initiative that was started at the beginning of the year. Ford announced a restructure in March that divided its lineup of ICE and electric vehicles into two groups. Ford Blue continues to develop internal combustion vehicles to increase profitability, while Ford Model e is committed to EVs, software, and connected vehicle technology. Ford has launched a third division named Ford Pro, which offers work-ready ICE and electric goods and services to manage fleets for business and government customers.
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Author Jowi Kwasu 
