The Blue Oval’s pivot away from internal combustion powered vehicles is hardly complete, but the gears have started turning, as the automaker is now running full throttle toward battery electric vehicles. While it is currently unclear when the company will solely build electric vehicles, the shift is inevitable. That pivot partially hinges on cost reductions at Ford Blue, the newly created internal combustion division within the company, and while Ford CEO Jim Farley hasn’t exactly been subtle about the company’s desire to cull its workforce to reduce expenses, concrete details haven’t come to light until now. Sources provided Ford Authority with the general scope of the latest Ford buyout plan and stated that the company intends to go public with it this week.
According to individuals familiar with the Ford buyout plan, a grand total of 6,000 white collar workers will be impacted. About 3,000 of those workers are at retirement age, while 2,000 are contractors. As part of their buyout plan, they will receive nine months of severance. While it is currently unclear when the company will announce this new plan, it will most likely be made public this week.
Despite the large number of workers impacted, the total headcount is less than expected, as previous reports suggested 8,000 workers would face buyouts. In any event, The Blue Oval’s salaried workforce has most likely been bracing for the news since late July, which is when Farley released a video message to employees addressing the rumors. Notably, he did not deny them and stated that the company intends to reduce its structural costs in the future.
The latest Ford buyout plan comes roughly one year after the automaker culled about 1,000 engineers from its workforce. In addition to reducing its headcount, the automaker intends to reduce complexity from its internal combustion vehicles as it continues to allocate capital and resources toward electric vehicles. As Ford Authority previously reported, Ford will spend about $50 billion over the next four years in an effort to produce at least two millions EVs annually through 2026.
We’ll have more on this new plan soon, so subscribe to Ford Authority for comprehensive Ford news coverage.
Update: Ford reached out to clarify that their current plan calls for a reduction of 3,000 salaried workers employed in the United States, Canada, and India. As part of the latest action, 2,000 Ford employees and 1,000 agency personnel are impacted and they will receive severance and help in finding employment opportunities elsewhere.
Comments
Times, they are a changin’…
So Ford is laying off thousands of high priced Ford Blue employees, some unionized, while they are hiring thousands of Ford e employees, not unionized, and at lower wages. I assume some of those Ford Blue employees could be transferred to Ford e ( maybe with a little training ), but no. What a way to pay back your dedicated employees that toed the company ( and CEO’s ) line. Sounds more like union busting and wage busting tactic, to me.
Michael,
Like it or not there is a reason they rarely build an all new automotive plant in the rust belt states anymore. The answer is UNIONS.
All manufacturers seem to go to the southern US or Mexico. They cannot afford to pay people $75/hr to hold a screw gun. They cannot afford to give them X, Y, Z discounts for distant relatives or a new Corvette on the way out the door.
Robots, technology, and reasonable labor rates.
Add in all the new EV manufacturers that build cars like Legos with AAA batteries and I hope you get the picture.
They now have a kiosk to order a Big Mac. Next will be a robot dumping fries into hot oil!
Uh! $75 NO! $17-$30/hr and 2 twenty minutes break and 1 thirty minute break for 12 hours of back breaking work that causes carpal tunnel, knee, hip, and back pain that employees eventually have to have surgical procedures to hopefully correct the problem. Hourly workers are told they have to wait 20-45 minutes to go to the bathroom after a bathroom break is requested. New hires benefits suck. Union representatives have treated seniority employees like crap. They move seniority employees from their home part plants to assembly plants. They replace them with lower wage employees and their family members. Yes the union sucks and is all about self gain but hourly employees are treated like paid slave. Supervisors act like slave masters. Some act as harassing and sexually harassment is a perk given to them when they are employed. You would not last a half hour in an assembly plant.
The layoffs are coming from non-union white collar workers. Ford not longer needs to develop ICE vehicles in the volume numbers into the future. F-Series trucks, yes.
Lincoln will be all BEV in a few years. Other makes such as Cadillac, Buick, Audi, Acura, Genesis will also be all BEV shortly.
Jeez, no cars to be sold, trucks only, dealer lots are empty and try to get a car fixed….and now no folks to do any work for millions of products on the road…sad.
Can I point out that a “layoff” is when a unionized worker is told not to come in (laid off); but they must still be paid according to their contractual stipulation. UAW workers can not be fired without cause–if there is no work to do, they still get paid, and will be called back when there is work. These are *terminations*.
Yes they are terminations but everyone in the work force uses the word “layoff” to refer to a termination that is not the result of poor performance or rule violations but is instead usually done as part of restructuring or cost saving. What word would you have us use for that. Termination can also mean getting fired for stealing, etc. So its the wrong word here also.
article is incorrect. Only workers that have been at Ford for 20+ years get 9 months. Lesser time gets less. For 5 years or less, the employee gets 4 weeks only. I know, I was let go today and have the SIRP papers.