Ford Motor Company plans to lay off at least “several hundred” wage earners starting as soon as next week, the Detroit Free Press has learned.
The action will be limited to officials in North America, perhaps only the United States
These are not acquisitions, but layoffs, particularly in the areas of Ford Blue and Model e, the units that design and build internal combustion vehicles as well as develop technology to operate electric vehicles, according to a source with knowledge of the situation who was not authorized to speak publicly about the case. The third of three units in the company, Ford Pro commercial, is not part of this job reduction.
The car manufacturer employs around 1[ads1]74,000 white and blue collar workers globally. Ford has about 28,000 white-collar workers in the United States and about 70,000 worldwide, a Ford spokesman confirmed Friday.
The cuts are expected to fall well below the 3,000 jobs cut in August in the US, Canada and India. Most of these cuts were made in Michigan, where Ford is headquartered. The automaker also cut 580 jobs in April 2022.
This planned round of cuts will be a fraction of the thousands last summer, Fri presse learns.
Ford’s job boards have been abuzz with anonymous posts about suspected job cuts in recent days, and media outlets have written about pending cuts in the coming weeks.
The automotive industry is dealing with volatile changes in the economy, supply chain and product design, while also needing to spend billions on the development of electric vehicles.
In April, General Motors said it achieved $1 billion in savings by cutting several hundred jobs in February and offering voluntary buyouts in March to about 5,000 U.S. salaried employees and global executives.
GM CEO Mary Barra and Ford CEO Jim Farley have consistently told shareholders during earnings calls that they will make adjustments as needed to remain competitive. At this point, gasoline-powered vehicles generate revenue needed to pivot to new electric products.
Automakers including Ford continue to hire talent in areas such as electrification and software technology even as layoffs occur. Managers across the industry say they must continue to align skills with new demands.
Ford spokesman TR Reid said in a statement on Friday: “We have nothing to announce. As we have said, part of the ongoing management of our business includes adjusting our global workforce to meet business plans, and staying cost competitive as our industry is evolving. At the same time, we continue to hire in key areas so that we have the skills and expertise needed to deliver on the Ford+ plan.”
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