Ford cuts 3K white-collar jobs to cut costs | News, Sports, Jobs

DETROIT — About 3,000 Ford Motor Co. white-collar workers will lose their jobs as the company cuts costs to ease the long transition from internal combustion vehicles to battery-powered ones.

Executives at the Dearborn, Mich. automaker made the announcement Monday in a company-wide email, saying 2,000 full-time workers would be laid off along with 1,000 more contract employees.

The cuts represent about 6% of the 31,000 full-time workers in the United States and Canada. Ford’s 56,000 unionized workers are not affected. Some workers will also lose their jobs in India.

The job losses come at a time of unprecedented change in the auto industry, which for more than 100 years has lived on the sale of gasoline-powered vehicles. Governments around the world are pushing to phase out combustion automobiles to mitigate the impact of climate change. Companies like Ford are orchestrating the liquidation of their combustion businesses over several years, even though they are still generating cash to fund the development of electric vehicles.

Ford said it expects half of its global production to be electric vehicles by 2030.

Executive Chairman Bill Ford and CEO Jim Farley said in the email to employees that Ford would provide severance packages and significant help for workers to find new jobs. They wrote that Ford had a chance to lead the new era of connected and electric vehicles.

“Building on that future requires changing and reshaping virtually every aspect of how we have operated for over a century,” says the email. “That means redeploying resources and tackling our cost structure, which is uncompetitive with traditional and new businesses.”

Farley and Ford wrote that the company was reviewing each team’s work to decide where the cuts would be made. The company determined that its cost structure was not competitive with General Motors, Stellantis and Tesla. Ford has previously said it aims to reduce the annual structural costs of internal combustion vehicles by $3 billion by 2026.

“We are eliminating work, as well as reorganizing and simplifying functions across the company,” they wrote in the email.

Farley has repeatedly said the company’s global workforce of 182,000 is too large and needs to cut costs and simplify processes so it can scale faster during the transition. to electric vehicles.

The company has already restructured in Europe, Asia and India.

The cuts may not be over. Company spokesman TR Reid said Ford will continue to evolve with the industry and further job losses are possible. He said it’s common for companies to continually add people where they need them and cut back where fewer jobs are needed. “With the rapid pace of this industry, we will manage the business smartly for these rapidly changing priorities,” he said.

Ford shares, already under pressure after a $1.7 billion verdict against the company linked to a vehicle death in Georgia, fell nearly 6% and led automakers lower amid a large sell-off in the markets on Monday.

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