Ford CEO Jim Farley at a battery lab for the automaker in suburban Detroit, announcing a recent $3.5 billion electric vehicle battery plant within the state to provide lithium iron phosphate batteries, Feb. 13, 2023.
Michael Wayland/CNBC
DETROIT — Ford Motor confirmed Monday it would perform layoffs this week, primarily affecting engineering jobs within the U.S. and Canada, because the automaker seeks billions in cost-cutting measures because it restructures its business operations.
The job cuts are expected to affect all three of Ford’s business units: Ford Blue, its traditional internal combustion engine operations; Model e, its electric vehicle unit; and Ford Pro, its fleet service operations.
An organization spokesperson declined to supply what number of employees might be affected. In Ford’s most up-to-date quarterly filing in May, the automaker said it expected to incur total charges in 2023 that range between $1.5 billion and $2 billion, “primarily attributable to worker separations and supplier settlements.”
That forecast in comparison with $2 billion and $608 million in 2021 and 2022, respectively, related to similar actions.
Ford has been restructuring its operations for several years under its Ford+ plan, led by CEO Jim Farley. The automaker cut 3,000 staff in North America in August and has more recently conducted 3,800 layoffs in Europe.
“We proceed to review our global businesses and should take additional restructuring actions where a path to sustained profitability will not be feasible when considering the capital allocation required for those businesses,” Ford said in its first-quarter filing.
Farley has said the corporate has a roughly $7 billion cost drawback compared with a few of its competitors, which it’s attempting to handle through efficiency gains and job reductions.
Ford’s worker headcount last 12 months dropped about 10,000 people to 173,000 globally, in accordance with a separate public filing.
“Delivering our Ford+ plan for growth and value creation includes increasing quality, lowering costs, investing in our priorities, and adjusting staffing to match the capabilities we’d like,” the corporate said in an emailed statement. “People affected by the changes might be offered severance pay, advantages and significant help to seek out recent profession opportunities.”
Essentially the most recent layoffs were first reported late last week. At the moment, some contractors were notified they’d now not be working with the corporate.
Leaders whose teams are affected were notified this afternoon, and employees are expected to be notified through midweek, in accordance with people aware of the corporate’s plans. The corporate has instructed units affected by the cuts to work remotely this week because the layoffs are conducted, the people confirmed.
Ford will not be the one automaker to cut back its headcount, because it realigns its business to focus more on electric vehicles.
Crosstown rival General Motors has taken some layoff actions and conducted an worker buyout program that cost it $875 million in the course of the first quarter.
Jeep maker Stellantis confirmed in April it was offering voluntary buyouts to about 33,500 U.S. employees, as the worldwide automaker attempts to chop costs and headcount.
