Ford will begin notifying approximately 3,000 people this week that their positions with the company have been eliminated. The job cuts will come in the United States, Canada, and India. Roughly 2,000 salaried workers will be affected, with another 1,000 agency positions dropped as part of a restructuring plan to make Ford more competitive in the automotive market.
Automotive News first reported the job cuts, stating a letter was sent to all employees notifying them of the pending changes. The word came directly from Ford CEO Jim Farley and Executive Chair Bill Ford. A Ford representative confirmed the letter and the information with Motor1.com.
Here's an excerpt from the letter:
We committed to sharing information as decisions are made along the way. As we tackle all aspects of costs – from materials to those related to quality – we are informing some Ford teammates this week in the U.S., Canada and at FBS in India, that their positions are being eliminated. Overall, we are reducing our salaried workforce by about 2,000, as well as reducing agency personnel by about 1,000. These actions follow significant restructuring in Ford operations outside of North America over the past couple of years.
We worked differently than in the past, examining each team’s shifting work statement connected to our Ford+ plan. We are eliminating work, as well as reorganizing and simplifying functions throughout the business. You will hear more specifics from the leaders of your area of the business later this week.
In July, we reported that Ford could cut as many as 8,000 salaried jobs from its Ford Blue division, the side that focuses on internal combustion vehicles. The report also stated the cuts could come in waves, so it's possible more positions might be eliminated in the future.
Like most automakers, Ford is working towards shifting to broader electrification in vehicles. To help facilitate the transition, Ford essentially split into two divisions: Model E and Blue. As previously mentioned, Ford Blue focuses on internal combustion vehicles and components. Model E is all about electric power. It's unclear if the current job cuts are relegated to one division or affect both.
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The cuts come as part of Ford's broad restructuring initiative called Ford+. If everything goes according to plan, the Blue Oval will build 2 million EVs a year by 2026 while simultaneously cutting $3 billion in company costs.
