Job cuts are being implemented this week in the United States, Canada, and India.
This week, Ford will begin informing roughly 3,000 workers that their positions have been eliminated. The United States, Canada, and India will all feel the effects of the layoffs. As part of a plan to make Ford more competitive in the automotive market, approximately 2,000 salaried workers and another 1,000 agency positions will be affected by layoffs.
The layoffs were first reported by Automotive News, which cited a letter sent to all staff members as official notice of the impending changes. Both Bill Ford, Ford’s executive chair, and CEO Jim Farley, who oversees all operations at the company, made the announcement. A representative from Ford verified the letter and the details with Motor1.com.
You can read some of the letter below:
We’ve committed to communicating our progress and decisions as they’re made. This week, we are informing some Ford teammates in the United States, Canada, and FBS in India that their positions are being eliminated as we work to reduce costs across the board, from raw materials to quality control. We will be laying off about 2,000 people from our salary ranks and another 1,000 from our agency ranks. These steps follow extensive reorganization at Ford’s international division over the past few years. We reorganized our process by looking at how each team’s evolving work statement related to our Ford+ strategy. We’re streamlining processes across the company by getting rid of unnecessary jobs and reducing bureaucracy. Later this week, you will hear more details from the department heads in your organization.
We reported in July that Ford may lay off as many as 8,000 salaried workers from its Ford Blue division, which is responsible for producing internal combustion engine vehicles. The report also warned that these layoffs could occur in waves, suggesting that additional jobs could be lost.
Ford, like most automakers, is preparing for a transition to widespread vehicle electrification. Ford essentially divided into the Model E and Blue divisions to help with the transition. Ford Blue, as was mentioned, is dedicated to ICE vehicles and parts. The electric motor is the heart of the Model E. It is currently unknown whether the current round of layoffs affects only one department or both.
The layoffs are a part of Ford’s larger Ford+ restructuring program. By 2026, the Blue Oval expects to have reduced costs by $3 billion while producing 2 million electric vehicles annually.
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