On February 13, 2023, Ford CEO Jim Farley announced at the automaker’s battery lab in the suburbs of Detroit that a new $3.5 billion electric vehicle battery plant would be built in the state to produce iron phosphate lithium battery.
Michael Whelan/CNBC
Detroit- Ford The automaker confirmed on Monday that layoffs will take place this week, mostly affecting engineering jobs in the U.S. and Canada, as the automaker seeks billions of dollars in cost-cutting measures as it restructures its business operations.
The job cuts are expected to affect all three of Ford’s business units: Ford Blue, its traditional internal combustion engine business; Model e, its electric vehicle unit; and Ford Pro, its fleet services business.
A company spokesman declined to say how many employees would be affected. In Ford’s latest quarterly report in May, the automaker said it expected to incur a total charge of $1.5 billion to $2 billion in 2023 “attributable primarily to employee departures and supplier settlements.”
This compares with projected amounts for similar actions of $2 billion in 2021 and $608 million in 2022.
For years, Ford has been restructuring its business under the Ford+ program led by Chief Executive Officer Jim Farley. The automaker cut 3,000 jobs in North America in August and 3,800 more recently in Europe.
“We will continue to review our global businesses and may take additional restructuring actions if we are unable to achieve sustained profitability when considering the required capital deployments for those businesses,” Ford said. said in the first-quarter filing.
Farley said the company has a cost disadvantage of about $7 billion compared with some rivals, which it is trying to address by improving efficiency and cutting jobs.
Another public filing showed Ford’s global workforce fell by about 10,000 last year to 173,000.
“Achieving our Ford+ plan for growth and value creation includes improving quality, reducing costs, investing in our priorities and aligning staffing to our required capabilities,” the company said in an emailed statement. People affected by these changes will receive severance pay, benefits, and significant assistance in finding new career opportunities.”
News of the latest layoffs was first reported late last week. At the time, some contractors were told they would no longer work with the company.
Leaders of affected teams were notified this afternoon and employees are expected to be notified by midweek, according to a person familiar with the company’s plans. The company has instructed units affected by the layoffs to work remotely during the layoffs this week, a person familiar with the matter confirmed.
Ford isn’t the only automaker cutting jobs, as the company is retooling its business to focus more on electric vehicles.
cross town rival General Motors The company made some layoffs and implemented an employee buyout program that cost $875 million in the first quarter.
jeep maker star In April, the company confirmed it would offer a voluntary buyout program to about 33,500 U.S. employees, as the global automaker tries to cut costs and headcount.
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