August 23, 2022
Ford Motor Company announced on Monday that it is firing some 3,000 white-collar and contract workers. This is the latest in a series of cost-cutting measures the company is taking as it transitions to electric vehicles with greater ranges.
Ford informed staff through internal email on Monday that it would start informing affected salaried and contract workers of the layoffs this week. The Wall Street Journal looked into the email.
About 183,000 Ford employees will be laid off as part of the 1% employment reduction, primarily in the United States, Canada, and India. The Dearborn, Michigan-based automaker will lose almost 2,000 paid positions. According to the business, the remaining 1,000 employees hold contract jobs with other organizations.
The reductions weren’t a surprise. In July, the Wall Street Journal and other media sites reported that the car manufacturer will be reorganizing more broadly in order to increase its focus on electric vehicles and the batteries that power them. As a result, layoffs for white-collar employees would be implemented.
Following the announcement of a $1.7 billion jury decision in a lawsuit involving a rollover accident involving one of the company’s F-250 pickup trucks that claimed the lives of two individuals, Ford shares fell 3.9% each on Monday.
Using new technologies that weren’t previously essential to its operations, such creating advanced software for its vehicles, Ford is changing how it runs and reallocating resources, according to the company’s email, which was signed by Executive Chair Bill Ford and Chief Executive Jim Farley. A spokeswoman said the job cuts would take effect on September 1.
Source: Wall Street Journal
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