Ford Motor Co. is preparing to cut up to 8,000 jobs in the coming weeks as the automaker tries to boost profits to finance a push into the electric vehicle market, according to people familiar with the plans.
Removal will come in Ford The Blue unit is responsible for the production of internal combustion engine vehicles, as well as other salaried operations throughout the company, said unnamed respondents revealing internal discussions. The plan is yet to be finalized and the details are still subject to change.
The move will mark a major step in CEO Jim Farley’s cuts 3 billion dollars expenses in 2026. He said he wanted change Ford Blue became “the engine that generates profits and cash for the entire business.” In March, Farley completely reconstruct Ford, split its car production in two by creating a “Model e” unit to expand its electric vehicle offering and a “Ford Blue” to focus on traditional gas burners such as Bronco sport utility vehicle.
Job cuts are expected to come to Ford’s salaried ranks across a range of operational functions, according to people familiar with the matter. They may appear in phases, but are likely to start this summer, the people said. Ford employs about 31,000 salaried workers in the US, where most of the cuts are expected.
Ford declined to comment on possible job cuts, saying it is focused on reshaping the organization to capitalize on the growth of the company. tram. Director of Communications Mark Truby said: “As part of this, we have set clear goals to reduce our cost structure to ensure we are lean and fully competitive with other companies. the best in the industry,” said Chief Communications Officer Mark Truby.
Farley has said that cutting staff is the key to boosting profits, which can vaporize on its electricity Mustang Mach-E and other plug-in models in the context of incremental goods and guarantee cost.
“We have too many people,” Farley speak at a Wolfe Research automotive conference in February. “This management team firmly believes that our ICE and BEV portfolios are underperforming.”
Shares of Ford are down 39% this year through Tuesday, worse than the broader market, amid inflation fears and supply chain troubles roiling the automotive industry. bowl.
In March, Farley increased spending on electric vehicles by $50 billion and set a plan to build 2 million battery electric vehicles a year by 2026, after selling only 27,140 in the US last year. Last month, Ford electric vehicle sales increased 76.6% from a year before it launched new electricity F-150 Lightning to pick up.
To finance Ford’s electric ambitions, Farley said he needs the company’s traditional gas-fueled models to make more money.
“The funding for that $50 billion is all based on our core automotive business,” Farley said in a March interview with Bloomberg Television. “That’s why we created a separate group called Ford Blue, because we need them to be more profitable to fund this.”
