Sunday, June 23, 2024
NewsFord Could be Preparing to Cut 8,000 Jobs

Ford Could be Preparing to Cut 8,000 Jobs

Ford is likely to fire 8,000 employees over the coming weeks in order to fund the development of new electric models.

Bloomberg has learned that the automaker Ford is preparing to cut up to 8,000 jobs in the coming weeks. This administrative decision would have been taken to finance the electric shift, Ford which wants to increase its profits at the moment. According to the publication, this information would come from sources close to the case.

The layoffs would be limited to the entity Ford Blue, for now, the new division created earlier this year to differentiate the electric effort (Ford Model e) and the effort of vehicles with thermal engines (Ford Blue).

Recall that Ford CEO Jim Farley has already indicated that he intends to cut costs internally, up to $3 billion by 2026. Ford Blue needs to generate more profits to fund the shift to an electric fleet. At the time of the March announcement in which the automaker split its business into two entities, electric vehicle-related spending increased to $50 billion, with Ford also aiming to reach the milestone of two million electric vehicles assembled by 2026. The arrival of the F-150 Lightning pickup truck should help boost EV sales by 2026, but Ford needs a serious boost in profits.

The supply crisis has seen its profits melt like snow in recent months, especially with its fleet of electrified vehicles. Farley said at an automotive conference in February that Ford had too many employees. Cutting nearly 8,000 jobs seems to be the solution being considered to boost profits and make the electric adventure profitable.

According to Bloomberg’s sources, the process of job cuts could begin over the summer, and in stages. Moreover, several types of jobs would be affected by these measures, in various operational functions.

Source: Bloomberg

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