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Ford Authority

Ford CEO Jim Farley Says Company Has Too Many People

Last week, a report surfaced indicating that Ford is on the verge of laying off roughly 8,000 people from the automaker’s ICE-focused Ford Blue division, a move that follows the company’s decision to split itself into two entities to boost profit and improve quality, including creating an EV-focused division dubbed Model e. Ford CEO Jim Farley later acknowledged this rumor in an email to employees, but didn’t go so far as to confirm or deny it while also noting that FoMoCo needs to reduce its structural costs to remain competitive, and that it currently employs “too many people,” a sentiment Farley reiterated while speaking with Adam Jonas from Morgan Stanley during the automaker’s Q2 earnings call.

Ford CEO Jim Farley

“You know, as I said in my comments, Adam, we absolutely have too many people in certain places, no doubt about it,” Farley said. “And we have skills that don’t work anymore. And we have jobs that need to change. And we have lots of new work statements that we’ve
never had before. We are literally – virtually – we are reshaping our company, like every part of our company. And, you know, in our ICE business, we want to simplify it. We want to make sure the skills we have and the work statements we have, you know, are as lean as possible. We know our costs are not competitive for it, and we are – that’s what I mean by we are not satisfied.”

“But I just want to emphasize that in the past, at least in my career for 40 years, we’ve kind of often indiscriminately, you know, just taken the cost out. That’s not what’s happening at Ford now. This is a different kind of change where we’re reshaping the company, you know, reshaping skills, investing in new technologies, and simplifying investments in others, i.e. spending less. So we do what we have too – it is kind of the old adage. Yes. I think every company probably has too many people. I just, you know, we have to go do the workflows and decide how this works now and going forward.”

In spite of these rumored layoffs of what is expected to consist of mostly salaried positions from Ford Blue, FoMoCo is also in the process of adding 3,030 new manufacturing jobs between now and 2024 to satisfy the requirements of an incentive package the automaker is set to receive from the state of Michigan. However, these looming salaried layoffs won’t impact its eligibility for that particular package, as Ford Authority reported earlier this week.

We’ll have more on these rumored layoffs as soon as it’s available, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. Liam T

    Layoffs. Not surpriseD… .. you make corporations pay taxes and we all lose our JOBS

    Do your own research!! I have a degree from the university of COMMON SENSE

    Reply
    1. Steve Ketterer

      And–they pass the tax expense onto the consumer.

      Reply
      1. Liam T

        Yessir… If I pay taxes why should companies have to pay them too????? Idiot’s

        My son works for AMAZON and they don’t pay taxes. He just got a PROMOTION. Probably going to be fired now becau

        Reply
  2. Jose Velez

    Ford Warranty repair cost twice than GM (I do not know how or why because GM cars are very bad). This cost is around $4B a year. I own 7 Ford vehicles. My Ford Escape Titanium 2016 had a major repair on the transmission, a/c compressor replacement, Front struts replacement, Engine and transmission mounts replacement. Total repair charge to Ford over $3300 (Extended Warranty). It has 5.5 years and 54,000 miles. Without the warranty payment the repair cost would be haft the book value of the vehicle. I did change the transmission oil at 40K. In other words besides firing people make good cars. I have two Mach E. The 2021 has several recalls and the 2022 had a software hack to avoid over heating. My GT 500 could have issues the DCT gearbox oil leaking and a software upgrade. Quality is not Job 1

    Reply
  3. Tigger

    The floggings will continue until the morale improves.

    Reply
  4. David

    Think Sears.

    Reply
  5. Mrx19

    He may think he is the smartest guy in the room but Farley could be one of those 8000 if the Ford family (and Bill) gets tired of watching their stock hover in the low teens. Sadly no Mulally on the horizon.

    Reply
  6. John Coviello

    Ford will soon be no more thanks to Farley !!!!!! Sorry Guy’s,but just wait. As soon as ordinary people stop buying and paying for anything other than food; Amazon will follow also suit.

    Reply
  7. donnie

    he’s something else-the way the last year plus has gone Farley and his crew should be leaving-still waiting on that maverick?????????????

    Reply
  8. Shane

    This guy is single handedly running Ford into the ground. Ford’s financial numbers are horrible compared to other manufacturers. 3.3 Million recalls, quality issues, laying off experienced employees. All of these problems are a direct result of a flawed senseless push to EVs by the CEO.

    Reply
  9. Dave Mathers

    ‘Says Company Has Too Many People’. One could change that statement to ‘Says the GOVERNMENT Has Too Many People’!! LOL

    Reply
  10. Mike

    He needs money for EV rollout and needs to improve profitability and share price. So what is the quickest and easiest way to do that? Cut the people that support all your wild dreams. Nice way to pay them back.

    Reply
    1. Tigger

      And cut the talent needed to deliver products that delight the customer. Unhappy customers= less sales = more cutbacks. Junior said at one time he’ll not cut Ford into oblivion, but he looks like he’s doing just that.

      Reply
  11. Dennis L

    So does this mean the future manufacturing in West Tennessee is now scrapped? Imagine 6,000 workers all fired before they even apply to work here?

    Reply
    1. Tigger

      I wouldn’t say scrapped as much as scaled back. Kind if what gm did at Saturn in Spring Hill in the 1980s.

      Reply
  12. david venesky

    Ford Dealers are concerned about Farley and the push for ev’s. I am too. I will not buy an ev that is being forced on us by the left. I have had five new fords and good luck with all of them. I drive an F250 with 240k miles and the 6.2 v8 has not broken down yet. Superior quality and great dependability. My family car is a 2017 ford fusion turbo that gets 35mpg on the road. Only 1 warranty call on the navigation system built by microsoft that failed. Took 3 months to get another board. Otherwise the car has been perfect and I love it. Will buy another gasoline fueled Ford in 2023 when stock comes back to normal EV will kill FORD as we know it.

    Reply
  13. David

    And on top of that, axing all the retail dealers at the end of 2024 there won’t be a ford network left worth its salt, shocking!!

    Reply
  14. Michael De Santis

    Mr Farleys salary is more than likely equal too the people that might get laid off it would be easier to do with out him, bring back Mark Fields Good Man uses the common sense he was gifted with.

    Reply
  15. Michael De Santis

    Replace Mr Farley the sooner the better!

    Reply

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