Ford is slashing its global workforce to prepare for restructuring.
Ford has made no secret of its plans to restructure its business in the past two years. Under its current CEO, Jim Farley, Ford is planning on optimizing its business, slashing extraneous operating costs, and redirecting funds toward the development and production of electric vehicles. Today, another step toward this restructuring began.
3,000 Ford employees were notified this morning by a mass-message from Ford Chair Bill Ford that their positions had been terminated in order to cut the company’s operating costs. The cuts include 2,000 salaried positions and 1,000 agency jobs in most countries where Ford operates.
“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 message reads.
“We worked differently than in the past, examining each team’s shifting work statement connected to our Ford+ plan. We are eliminating work, as well as reorganizing and simplifying functions throughout the business.”
About 3,000 white-collar workers at Ford Motor Co. will lose their jobs as the company cuts costs to help make the long transition from internal combustion vehicles to those powered by batteries. https://t.co/kOlKrn6zIW
— The Associated Press (@AP) August 22, 2022
This decision is in line with previous statements made by Farley that the company employs too many people, and that there are many places where they could obviously cut down their spending.
“There are opportunities to be more efficient and more effective in all the business units and all the functions that support them,” Ford spokesman T.R. Reid told CNBC.