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Ford to cut 3K jobs while redeploying resources & cost structure

In a recent letter obtained by Automotive News, Ford Motor Company sent the letter to employees. Stating that 3,000 jobs would be cut, as Ford is charging and reshaping its operations. As they are redeploying resources and cost structure, with the changes they are to compete with traditional and new competitors.

Ford to eliminate 3,000 jobs in an effort to cut costs

Image credits- CNBC

CEO Jim Farley stated, “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.”

Among the 3,000 jobs that will be cut, 2,000 salaried positions and 1,000 agency jobs will be lost. Ford confirmed the authenticity of the letter, however, did not add anything to it. Farley detailed not only the elimination of some positions but also the “reorganization and simplifying of functions” within the company. Ford made the decision earlier this year to separate its ICE and EV businesses into “divisions.” This helped organize projects based on powertrains, as ICE vehicles fell under “Ford Blue,” while EVs are considered “Ford Model e” projects.

Electrification

Farley detailed not only the elimination of some positions but also the “reorganization and simplifying of functions” within the company. Ford made the decision earlier this year to separate its ICE and EV businesses into “divisions.” This helped organize projects based on powertrains, as ICE vehicles fell under “Ford Blue,” while EVs are considered “Ford Model e” projects.

Ford is arguably the most committed to an electrified future among legacy automakers. While General Motors has also made strides toward transitioning to EVs, Ford has been more consistent in terms of ramping production and scaling its products. The Mustang Mach-E and Ford F-150 Lightning are already successful product launches from Ford, and the company is making any changes necessary to stay on schedule with its transition to electric vehicles.

“None of this changes the fact that this is a difficult and emotional time,” Farley said in the letter. “The people leaving the company this week are friends and coworkers and we want to thank them for all they have contributed to Ford. We have a duty to care for and support those affected – and we will live up to this duty — providing not only benefits but significant help to find new career opportunities.” Recently, Ford sold green bonds to fund its electric vehicle projects, as Bloomberg reported. Ford sold 1.75 billion in debt, which was expected to mature in 10 years, sources said. The bonds were sold to help fund and finance new and existing green projects.

 

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