Ford will begin notifying about 3,000 people this week that their positions at the company have been eliminated. Layoffs will occur in the United States, Canada and India. About 2,000 salaried workers will be affected, with another 1,000 agent positions dropped as part of a restructuring plan to make Ford more competitive in the auto market.
Automotive News first reported the termination of employment, stating that a letter had been sent to all employees informing them of the pending change. The word comes directly from Ford CEO Jim Farley and Chief Executive Bill Ford. A Ford representative confirmed the letter and information with Motor1.com.
The following is an excerpt from the letter:
We are committed to sharing information as decisions are made along the way. As we tackled all aspects of cost – from materials to quality related – we informed several of our Ford teammates this week in the US, Canada and at FBS in India that their positions would be eliminated. Overall, we reduced the salaried workforce by about 2,000, as well as reduced agency personnel by about 1,000. This action follows a significant restructuring of Ford’s operations outside North America over the past few years.
We work differently than before, checking each team’s shift work statement as it relates to our Ford+ plan. We eliminate work, and reorganize and simplify functions across the business. You’ll hear more specifics from your business area leaders later this week.
In July, we reported that Ford could cut as many as 8,000 salaried jobs from its Ford Blue division, the side that focuses on internal combustion vehicles. The report also states the cuts could come in waves, so there is a possibility that more positions could be eliminated in the future.
Like most automakers, Ford is working to shift to broader vehicle electrification. To help facilitate the transition, Ford was basically split into two divisions: Model E and Blue. As mentioned earlier, Ford Blue focuses on vehicles and internal combustion components. Model E is all about electric power. It’s not clear if the current layoffs are downgraded to one division or affect both.
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The cuts were made as part of Ford’s broad restructuring initiative called Ford+. If all goes according to plan, Blue Oval will build 2 million EVs per year by 2026 while cutting the company’s costs by $3 billion.
