Ford Motor Co. will cut 3,000 jobs worldwide as part of a restructuring to lower costs and fund electric vehicle manufacturing.
“We are eliminating work, as well as reorganizing and simplifying functions throughout the business,” Ford executive chairman Bill Ford and chief executive officer Jim Farley said in a letter to employees Monday.
Ford plans to eliminate 2,000 salaried positions and 1,000 contract jobs in the United States, Canada and India. A company spokesman said most of the cuts are in Michigan, where the automaker is headquartered.
“Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century. It requires focus, clarity and speed. And, as we have discussed in recent months, it means redeploying resources and addressing our cost structure, which 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 reduce costs saying the automaker had too many workers.
“It’s not a surprise given Farley being very open about Ford having too many people,” David Whiston, U.S. autos equity analyst for Morningstar Inc. “They also need to cut costs to get profits moving again so this is one of those steps. They seem to really want to focus on EV now.”
Monday’s job cuts are divided across Ford’s businesses, which split earlier this year into internal combustion engine manufacturing, called “Ford Blue,” and electric, referred to as “Ford Model e.”
“We are going all in, creating separate but complementary businesses that give us start-up speed and unbridled innovation in Ford Model e together with Ford Blue’s industrial know-how, volume and iconic brands like Bronco, that start-ups can only dream about,” Farley said in a statement in March.
Ford plans to build 2 million electric vehicles a year with a $50 billion investment by 2026. Last year, Ford produced fewer than 64,000 EVs. The company increased its EV spending this year to $5 billion, double what it spent in 2021.
Ford’s restructuring, called Ford+, aims to save up to $3 billion in costs tied to internal combustion engine vehicles by 2026. Monday’s job cuts are expected to help get the automaker closer to its goal.
Copyright 2022 United Press International, Inc. (UPI). Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI’s prior written consent.
—-
This content is published through a licensing agreement with Acquire Media using its NewsEdge technology.
The demise of yet another great American icon. If Henry were here . . . .
One of my gaming buddies, used to say ‘i’d rather drive a toy box, than a ford’. I wonder what he’d say now!
Antother case of worldwide social redistribution by the Democrats from the USA to failed nations overseas, whose culture winks and nods at kickbacks and laundered money. That $300 billion in Joe’s latest Climate/Inflation bill is that giant sucking sound Ross Perot warned us about back in the day. Taxpayers money should only be spent creating AMERICAN JOBS and bulding wealth in America. There really ought to be a law, and Ford ought to become an American company again or get out of the kitchen. Americans who are getting these electric vehicles shoved down our throats and being punished with high fuel prices will swear in legions never to buy an electric vehicle till death do them part. Henry Ford is spinning in his grave and if ever, like in WWII we had to convert our domestic automobile factories into military hardware, tanks and aircraft which outproduced the Japanese and NAZI’s, we will lose WWIII hands down as places like Mexico and China take over real control of our American wealth and destiny.
AND You can bet, every bit of those kickbacks they are likely getting, FROM THESE chinese companies THEY DO NOT PAY ONE DIME IN taxes on
“…When Farley took over as Ford’s CEO in October 2020, he promised to “move with urgency” to reduce costs saying the automaker had too many workers….” this taken from above article. As George Soros Would Say, ” America has got too big for its Britches and needs to be brought down A Peg or Two, to paraphrase George Soros.
“….in WWII we had to convert our domestic automobile factories into military hardware, tanks and aircraft which outproduced the Japanese and NAZI’s, we will lose WWIII hands down as places like Mexico and China take over real control of our American wealth and destiny…”
Could you hear the Socialist democrat party elite saying,” To each according to his ability, to each according to his needs…” Karl Marx
ford is making a mistake but who cares?
Well they built trucks for the Nazis during WWII. Why not these commies that are taking over our government?
I haven’t purchase American cars in over 4 decades, even though I would like to. They just don’t hold up to the rice burners.
I remember the brand new Ford Maverick my mom bought in 73, 74. I was just 11 or 12. While sitting in that car, I remember thinking, ‘this is a brand new car?’ What a chinchy, cheaply built car. It didn’t last 3 years. I’ve been a Toyota owner since 78!
My first, was a Chrysler newport. LOVED that car. Now i have a nissan..
We gave up on American made cars after lots of money down the drain and lots of time on the side of the road. We had them all. General Motors was the absolute worst. Ford was marginally better, Dodge was the best of the lot but that was then, not so today.
We switched to Japanese cars and we’ve never looked back. It was a major decision at our house. I didn’t want to buy what I then called, “un-American” but we were so tired of spending money on repairs and I have to say that repairs have been very minimal since then. Driving Subaru now and we’ve been very pleased.
They using the employee reduction to help pay the 1 billion plus dollar truck rollover case they recently lost?
This the democrats don’t care about the U.S.. We are not ready for electric vehicles. It will cost a fortune to put a recharge station (recharge ports) at your home. What about apartment s how many recharge ports will they be required to put in ?? The South is not and will not be ready for a least 5 to 10 years
My electric bill was 35% higher than last year thanks to the Biden Crime family sell out of the Americn car and oil industry. I can just imagine what it will be when I have to charge up my electic car every day,,,about twice what it will cost to drive a so-called gas guzzler.
AND You can expect, there to be more ‘peak hour’ fees coming, CAUSE Of all those charging cars..
Good question on apartment complexes.. WILL THE APARTMENT OWNERS be required to make those installs, or will TENANTS??
I bought the American made Tesla last year and I will NEVER go back to an ICE vehicle. We installed another 240 outlet in the garage to charge it (less than $200). I averaged the cost over the year, and it was 1/3 the cost of a gasoline engine (I had my Ford Mustang for 21 years)… and that was before the jacked up price of gasoline.
AND how much travel do you get on a ‘full charge’, compared to a full tank of gas?
” Stick It Where The sun doesn’t Shine,” Takes on a whole new meaning when talking about (Green Energy,’ doing away with Coal, oil, as a source of Energy, What about those days when the sun doesn’t shine nor the wind doesn’t blow…