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Downsizing Ford Cuts 3,000 Workers Worldwide

Aug. 22, 2022
The automaker has notified employees that 2,000 salaried and 1,000 contract workers' positions will be eliminated in the U.S., Canada, and India as it reshapes “virtually all aspects of the way we have operated for more than a century".

Ford Motor Co. is cutting 2,000 salaried employees and another 1,000 contractor positions in North America and India, according to a letter delivered to employees on Monday, August 22. The letter was reported by Automotive News.

The 3,000 job cuts will affect various roles in both of Ford’s two business units, Ford Blue and Ford Model-e. The automaker also will be streamlining a range of functions across the organization.

"Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century," according to Ford CEO Jim Farley and executive chairman Bill Ford in the letter. "It requires focus, clarity and speed. And, as we have discussed in recent months, it means redeploying resources and addressing our cost structure, which is uncompetitive versus traditional and new competitors.”

Earlier this month Farley told analysts that Ford has “too many people in certain places,” CNBC reported.

Ford listed 186,769 employees worldwide at the end of 2021, and 90,873 employees in the U.S.

Since being named CEO in October 2020, Farley has been implementing a five-year and more-than-$3-billion cost-cutting program, and aiming to restructure Ford with emphasis on commercial and electric vehicle businesses.  

"None of this changes the fact that this is a difficult and emotional time," the Farley/Ford letter continued. "The people leaving the company this week are friends and coworkers and we want to thank them for all they have contributed to Ford. We have a duty to care for and support those affected – and we will live up to this duty — providing not only benefits but significant help to find new career opportunities."

Details of separation benefits have not been announced.

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