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Ford announced 3,000 job cuts worldwide to lessen costs and fund the automaker’s shift to electric vehicle manufacturing. File photo by John Angelillo/UPI | License Photo
Aug. 22 (UPI) — Ford Motor Co. will cut 3,000 jobs worldwide within a restructuring to lessen costs and fund electric vehicle manufacturing.
“We have been eliminating work, in addition to reorganizing and simplifying functions through the entire business,” Ford executive chairman Bill Ford and ceo Jim Farley said in a letter to employees Monday.
Ford plans to remove 2,000 salaried positions and 1,000 contract jobs in america, Canada and India. An organization spokesman said the majority of the cuts come in Michigan, where in fact the automaker is headquartered.
“Building this future requires changing and reshaping practically all aspects of just how we’ve operated for greater than a century. It needs focus, clarity and speed. And, once we have discussed lately, this means redeploying resources and addressing our cost structure, that is uncompetitive versus traditional and new competitors,” the letter reads.
When Farley took over as Ford’s CEO in October 2020, he promised to “move with urgency” to lessen costs saying the automaker had way too many workers.
“It isn’t a surprise given Farley being very open about Ford having way too many people,” David Whiston, U.S. autos equity analyst for Morningstar Inc. “In addition they need to spend less to obtain profits moving again which means this is one particular steps. They appear to actually want to concentrate on EV now.”
Monday’s job cuts are divided across Ford’s businesses, which split earlier this season into internal combustion engine manufacturing, called “Ford Blue,” and electric, known as “Ford Model e.”
“We have been going all in, creating separate but complementary businesses that provide us start-up speed and unbridled innovation in Ford Model e as well as Ford Blue’s industrial know-how, volume and iconic brands like Bronco, that start-ups can only just dream of,” Farley said in a statement in March.
Ford plans to create 2 million electric vehicles per year with a $50 billion investment by 2026. This past year, Ford produced less than 64,000 EVs. The business increased its EV spending this season to $5 billion, double what it spent in 2021.
Ford’s restructuring, called Ford+, aims to save lots of around $3 billion in costs linked with internal combustion engine vehicles by 2026. Monday’s job cuts are anticipated to help obtain the automaker nearer to its goal.