Ford to cut 3,000 jobs in drive towards electric vehicles

Ford to cut 3,000 jobs in drive towards electric vehicles

Ford Motor Company will lay off around 3,000 white-collar staff, mostly in North America and India.

This is as it makes cost-cutting moves to hasten the switch to electric vehicles.

2,000 full-time salaried employees and another 1,000 contract workers would be laid off; the automaker announced in a company-wide email on Monday.

In the memo to staff, Executive Chairman Bill Ford and CEO Jim Farley stated that Ford will provide employees severance money and substantial assistance in finding new jobs. Ford has the potential to take the lead in the emerging era of linked and electric vehicles, they added.

Farley has emphasized time and time again that the company’s 182,000 global employees are too many; and that it needs to reduce expenses and streamline operations in order to accelerate the switch to electric vehicles.

The carmaker earlier declared its intention to invest $50 billion (€50.4 billion) in the development of electric vehicles by 2026. Ford has also stated that it aims to reduce the structural costs of internal combustion vehicles by $3 billion annually.

Read more: Ford is selling 8 million shares of once high-flying EV maker Rivian

The company leaders wrote in the email, “We are eliminating work; as well as reorganizing and simplifying functions throughout the business.” Additionally, they noted that Ford’s cost structure wasn’t competitive with those of Tesla, Stellantis, or General Motors.

It’s possible that the cuts will continue. Ford will continue to change with the industry, according to company spokesman T.R. Reid, and additional job losses may occur.

The loss of jobs occurs while the car industry, which has thrived on sales of petroleum-powered vehicles for more than a century, undergoes a transformation. To lessen the effects of climate change, governments around the world are advocating for the phase-out of internal combustion-engine vehicles.

According to Ford, by 2030, 50% of its global output will be electrified vehicles.

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