Ford Plans Up to 8,000 Job Cuts to Help Fund EV Investment
By Keith Naughton and Edward Ludlow, July 20, 2022, 2:23 PM CDTUpdated on July 20, 2022, 2:39 PM CDT
- Reductions seen coming from unit producing gas-fueled models
- CEO has said Ford profit hampered by having ‘too many people’
Ford Motor Co. is preparing to cut as many as 8,000 jobs in the coming weeks as the automaker tries to boost profits to fund its push into the electric-vehicle market, according to people familiar with the plan.
The eliminations 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 move would mark a significant step in Chief Executive Officer Jim Farley’s plan to cut $3 billion of costs by 2026. He has said he wants to transform Ford Blue into “the profit and cash engine for the entire enterprise.” In March, 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. (Read More)
Source: bloomberg.com