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Ford Starting Another Round of Downsizing

June 27, 2023
The automaker is due to cut hundreds of North American engineers and other workers in a new round of downsizing that’s meant to continue reshaping the organization as it emphasizes EVs and digital services.

Ford Motor Co. is laying off several hundred workers in the U.S. and Canada this week in its ongoing effort to reorganize the business, which it intends will be more focused on electric vehicles and digital services for individuals and fleets. The automaker has not indicated the total number of jobs are to be cut – one report stated it will be at least 1,000 – but it has confirmed that its reductions are centered on engineering and other salaried positions.

Ford has also reported that the current round of cuts will take positions from each of its three business units, Ford Blue (ICE vehicles), Model e (EVs), and Ford Pro (fleet services.)

Employees whose positions are targeted for removal will be offered severance pay and benefits, according to Ford.

Last summer Ford instituted about 3,000 job-cuts worldwide, in both its electric and internal combustion engine vehicle divisions, though the current number of reductions is not expected to be as many as that. This year the company implemented an estimated 3,800 job cuts in Germany, the U.K., and elsewhere in Europe.

Last month Ford reported it will take “restructuring” charges estimated at $1.5-$2 billion this year to reduce payroll and close unprofitable operations.

In various statements CEO Jim Farley has explained that Ford has too many employees overall and too few employees with the workforce skills that the organization will need to shift its emphasis to EVs and digital services.

Similar to other major automakers, Ford has targeted 2026 for its major transition to electric vehicle production – budging more than $50 billion by that date when it expects to produce 2 million EVs annually worldwide.

Both General Motors and Stellantis have implemented workforce downsizing plans in the past year, mainly by offering voluntary retirement incentives.

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