Ford Cutting off 3,000 Employees to Cut Costs, Ford Expanding into EV
Ford cut jobs as it switched to EV
Shocking news surfaced on the market as a well-renowned motor vehicle company Ford decided to switch its car design to today’s technology which is to switch fuel cars to electric vehicles. Although it is a good initiative, the cost was paid by the employees currently working in the company. Ford Motor Co. said it’s cutting 3,000 jobs as they are planning to move on investments that would boost their profits and they are likely to fund $50 billion into their plan of making electric vehicles.
The job cut will mostly and primarily affect the US outlets but some positions will also have its effects in Canada and India, said the spokesperson. According to the report, about 2,000 salary workers and 1,000 contract personnel will have a direct effect based on this decision.
Jim Farley made his comments on the changes by Ford!
The idea to reduce workers mostly comes from Ford’s operations that have the responsibility to build traditional and internal combustion engine vehicles. Chief Executive Jim Farley has said that he wants to boost profit by developing a cash engine for the entire enterprise. The target by Ford is to build around 2 million electric vehicles a year by the end of 2026 to stay in the competition and to catch up with the king of EVs Tesla Inc in order to finance this ambition, Farley has decided to make cash from the already designed gas-fueled cars.
Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century,” Farley and Executive Chairman Bill Ford wrote in a memo to employees Monday. “This is a difficult and emotional time. The people leaving the company this week are friends and coworkers and we want to thank them for all they have contributed.”
When asked by the spokesperson they didn’t rule out the possibility of additional jobs cut as Bloomberg previously reported Ford is considering cutting almost 8,000 jobs.
Ford sales and the impact on the employees?
Ford shares fell as much as 6.1% and were down 4.7% to $15.13 at 1:25 p.m. in New York as investors digested the job-cut news and a separate $1.7 billion verdict against the automaker on Aug. 19. Although Ford claims that the numbers do look appealing. Ford in March split operations into separate businesses, with one focusing on internal combustion engines and another on EVs. The company had 183,000 employees at the end of 2021, down from 186,000 at the end of 2020.
The Future for Ford
The company is not entirely shutting down its true cars and it expects its internal combustion engine business to grow. But Chief Executive Farley said that with time and with technology the workforce needs to be changed, “we have skills that don’t work anymore” was a statement he stated when he called in support of the idea to switch from old combustion cars to EVs.
Ford’s US group plans to derive one-third of overall sales from EVs by 2026, rising to half by the end of the decade. In Europe, where there were extensive cuts under the previous chief executive, the company has committed to making all passenger cars electric by 2030.