Ford Cuts 3,000 Jobs As It Pivots To EVs, Software
2 mins read
Published on August 28, 2022
Ford Motor Co said it will cut a total of 3,000 salaried and contract jobs, mostly in North America and India, as it restructures to catch up with Tesla Inc in the race to develop software-driven electric vehicles.
Ford Chief Executive Jim Farley has been saying for months that he believed the Dearborn, Mich. automaker had too many people, and that not enough of its workforce had the skills required as the auto industry shifts to electric vehicles and digital services.
"We are eliminating work, as well as reorganizing and simplifying functions throughout the business. You will hear more specifics from the leaders of your area of the business later this week," Farley and Ford Chairman Bill Ford wrote in a joint email.
Ford shares were down 4.8% in midday trading amid broader declines on Wall Street.
Like other established automakers, Ford has a workforce largely hired to support a traditional combustion technology product lineup. Going forward, Farley has mapped out a strategy for Ford to develop a broad lineup of electric vehicles. Like Tesla, Ford wants to generate more revenue through services that depend on digital software and connectivity.
Tesla's pre-tax profit margins have exceeded Ford's this year, and Farley has been blunt about the need to cut costs.
In Monday's email to staff, Farley and Ford said the company's cost structure "is uncompetitive versus traditional and new competitors."
Rising prices for batteries, raw materials and shipping are putting additional pressure on Ford and other automakers. Still, Ford has stuck to its full-year profit forecast, despite $3 billion in higher costs due to inflation.
Ford has begun separating its operations into electric, combustion engine and commercial vehicle operations. Farley said in July "cost reduction will happen" in the combustion operations. But Ford said on Monday the staff cuts will affect all parts of the company.
Rival General Motors Co in late 2018 moved to cut 14,000 jobs as it prepared to accelerate its electric vehicle strategy.
Ford, GM and Stellantis' North American operations will confront a new workforce challenge next year as they begin contract negotiations with the United Auto Workers union, which represents the Detroit automakers' U.S. factory employees.
UAW leaders have expressed concern that electric vehicles will mean fewer manufacturing jobs, and more jobs dispersed to non-union battery and EV hardware factories.
Great Deals on Used CarsView All Used Cars
- 41,489 km
- 1,18,054 km
- 22,376 km
- 44,300 km
- 84,000 km
- 77,000 km
- 47,549 km
- 76,000 km
- 76,000 km
- 62,500 km
56 minutes ago
The new video shows the subcompact SUV’s redesigned tail section and confirms that it will get ADAS functions
1 hour ago
The Mercedes-AMG CLE 53 4MATIC+ Coupe has an upgraded 3.0-litre inline six-cylinder turbo engine producing 442 bhp and 560 Nm torque.
3 hours ago
The Swift will be powered by a 1.2 litre, 3-cylinder petrol engine that puts out 81 bhp and 108 Nm of torque
4 hours ago
The Revuelto is powered by a 6.5 litre V12 engine mated to three electric motors that churn out a combined 1001 bhp
5 hours ago
Kia India takes the wraps off its new EV charging initiative, the K-Charge. It will be available to non-Kia EV owners as well.
5 hours ago
Milestone was reached about 7 years after the plant commenced operations in February 2017.
5 hours ago
Hero MotoCorp and Ather Energy come together to form a partnership for an inter-operable fast-charging network in India.
6 hours ago
Kawasaki is offering discount vouchers on the Vulcan S, Ninja 400, Ninja 650 and Versys 650 in its lineup with benefits going up to Rs. 60,000
7 hours ago
India-spec compact SUV to get a different design from the model sold in global markets.
7 hours ago
FADA reports that retail sales for automobiles in India were at an all-time high, with 28.54 lakh vehicles sold, surpassing 25.69 lakh vehicles sold in March 2020, when the industry transitioned from BS4 to BS6.
7 days ago
The updated Tesla Model 3 gets the “Active Hood” feature to reduce pedestrian injuries in the event of a collision
18 days ago
A YouTuber from Vietnam recently shared videos and images of his fully functional Cybertruck replica made out of wood and caught the attention of Tesla co-founder and CEO, Elon Musk.
22 days ago
While company chief Elon Musk was unable to meet in person due to health reasons, he expressed his honour in having the Indian minister visit Tesla’s manufacturing unit
25 days ago
The California Special pack is only available with the Mustang GT models and adds unique blue cosmetic elements to the vehicle.
27 days ago
Lucid customers will gain access to over 15,000 Tesla Superchargers across North America.