Ford

Ford plans to lay off up to 8,000 workers | Rare Techy

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American car manufacturing company Ford Motor Co. is preparing to cut up to 8,000 jobs in the coming weeks. The automaker is trying to boost profits to fund its push into the electric vehicle market Bloomberg.

The layoffs are taking place at the newly created Ford Blue unit, which is responsible for producing internal combustion engine vehicles and other salaried activities across the company, the people, who asked not to be identified, said, revealing internal discussions. The plan has not been finalized and the details are still subject to change, the report mentioned.

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The move would be a significant step in CEO Jim Farley’s plan to cut $3 billion by 2026.. He is reported to have said that he wants to make Ford Blue “a profit and cash engine for the entire company.” In March 2022, CEO Farley carried out a radical restructuring of Ford, splitting its car production in two, creating the “Model e” unit to increase electric vehicles. offerings and “Ford Blue” to focus on traditional gas burners like the Bronco sport utility vehicle.

The job cuts are expected to be phased in, but are likely to begin this summer. Ford employs about 31,000 salaried workers in the U.S., where most of the cuts are expected.

“As part of this, we have set clear targets to lower our cost structure to ensure we are lean and competitive with the best in the industry,” chief communications officer Mark Truby said in a statement. Bloomberg.

##JUMPLINK##

“We have too many people”

Ford CEO Jim Farley
Reuters

Earlier in February 2022 at Wolfe Research’s automotive conference, CEO Farley said, “We have too many people.” He added: “This management strongly believes that our ICE and BEV portfolios are underperforming.”

In March 2022, Ford CEO Farley increased EVS spending to $50 billion and laid out a plan to build 2 million battery electric vehicles a year by 2026, after only 27,140 were sold in the U.S. last year. Last month, Ford’s electric vehicle sales reportedly increased 76.6% year-over-year as it launched a hot new electric pickup truck, the F-150 Lightning.

Read also: Tesla begins 10% layoffs, some former employees confirm on LinkedIn

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