The Blue Oval is currently reducing the amount of workers it employs in order to cut costs as it ramps up spending on electric vehicle research and development. Since 2022, that has resulted in a major round layoffs in the United States, followed by a similar effort for its European and Australian operations. Now, per a new report from the Wall Street Journal, the company is planning to layoff more employees.
This latest round of Ford layoffs is expected to impact U.S. workers and may be revealed as early as next week, although the number of workers expected to lose their jobs is unknown at this time. Workers from Ford Blue (its gasoline and hybrid vehicle division) and Ford Model e (its electric vehicle division), along with those working on software are likely part of this latest round of layoffs. “As we have said, part of the ongoing management of our business includes aligning our global staffing to meet future business plans, as well as staying cost competitive as our industry evolves,” a Ford spokesperson told the Wall Street Journal.
Ford executives haven’t exactly been subtle about their desire to cut costs, as they feel the company isn’t competitive with its rivals in certain areas. As Ford Authority previously reported, Ford CEO Jim Farley has said the company has too many engineers and that overall, the company is less efficient now than it had been in the past. Ford CFO John Lawler has said on two separate occasions that the automaker has an $8 billion cost gap between itself and its rivals.
The layoffs and overall cost cutting are key components of the Ford+ plan, which also involves a renewed effort to tackle the quality issues that have been plaguing the company for some time. Additionally, other regions may be impacted by future efforts to cut costs too, including China, which has thus far avoided the cuts seen in Europe and the United States.
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Representing the compact pickup's best quarter ever.
The Mustang's got a head start, though.
Interest-free financing and more on all-electric full-size pickup truck.
The lowest-mile example we've seen in some time.
Outrunning some serious machinery in the process.
Though it expects to offset that loss via energy storage systems.
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My understanding is that white collar as well as blue will be impacted. Because the engineered systems are so much simpler in EV's, the need for a traditional sized engineering staff won't be the same especially if a couple of common platforms are used, and dressed up to look like a variety of models. Manufacturing will also involve fewer steps in the system as well resulting in simplification of that part of the process as well.
And i sit and wait, 9 months now for a 25k maverick built in mexico...🤔
And yet they build the Maverick and the "Bronco" Sport in Mexico, and the Lincoln Nautilus will soon be built in China. I understand that labor is a lot cheaper in those countries, but I wonder what all these soon-to-be unemployed Americans think? I know it's a global company and economy, but I'd like to see a U.S.-founded and -based company show some loyalty to American workers. Just another in a long list of recent disappointments from Ford.
Ford is a global company not just American
Same thing in Canada, industry wide. Government promises new green jobs. None have materialized yet.
Time to cut vice presidents and their salaries !
Why are they still needed ?
I don't know about other models, but hasn't the Escape had a number of production halts and recalls and they have had significant delays getting them out the door. (For me, on order a year and a half.) Do you think cuts will improve that?
Top 4 american made cars. TESLA. Ford and GM not in the top ten. Shame
My next vehicle will NOT be a Ford due to their recent decisions. (China, Mexico)
That will probably cripple Ford. 😜
These layoffs are only the beginning. The US is crumbling, and will crumble once and for all when people run out of credit, which has been passed out like candy over the last several years to anyone with a pulse. The average person is living on borrowed time, as are most companies.
So let’s cut back on engineering staff, so it all improve quality, and cut staff that builds and develops the profitable vehicles so we can invest in profit loss vehicles. Time for someone to take a business management refresher class.
News flash 65% of Americans have zero interest in electric vehicles, and they consume almost 4 times as much natural resources to build, and lack of infrastructure.