US Carmaker Ford Planning To Lay Off Up To 8,000 Employees To Reduce Costs & Focus On EVs

American automobile manufacturing firm Ford Motor Co. is preparing to cut as many as 8,000 jobs in the coming weeks. The automaker is trying to boost profits to fund its push into the electric-vehicle market, as per Bloomberg.

The layoffs will come in the newly created Ford Blue unit responsible for producing internal combustion engine vehicles, as well as other salaried operations throughout the company, said the people who asked not to be identified revealing internal discussions. The plan has not yet been finalized and details could still change, the report mentioned.

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The move would mark a significant step in CEO Jim Farley's plan to cut $3 billion in costs by 2026. He has reportedly said he wants to transform Ford Blue into “the profit and cash engine for the entire enterprise." In March 2022, CEO Farley radically restructured Ford, cleaving its carmaking in two by creating the "Model e" unit to scale up EV offerings and "Ford Blue" to focus on traditional gas burners like the Bronco sport utility vehicle.

The job cuts are expected to come in phases but are likely to begin this summer. Ford employs about 31,000 salaried workers in the US, where the bulk of the cut is expected.

"As part of this, we have laid out clear targets to lower our cost structure to ensure we are lean and fully competitive with the best in the industry," Chief Communications Officer Mark Truby said in a statement, as per Bloomberg.

"We Have Too Many People"

Reuters

Earlier at a Wolfe Research auto conference in February 2022 CEO Farley had said "We have too many people.” He added, "This management team firmly believes that our ICE and BEV portfolios are under-earning."

In March 2022, Ford CEO Farley boosted spending on EVS to $50 billion and set a plan to build 2 million battery electric vehicles annually by 2026, after selling just 27,140 in the US last year. Last month, Ford's EV sales reportedly rose 76.6% from a year earlier as it rolled out the hot new electric F-150 Lightning pickup.

Also Read:?Tesla Begins 10% Staff Layoff, Some Ex-employees Confirm It On LinkedIn

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