Ford to cut 3,000 jobs to cut costs | Rare Techy

DETROIT – Ford engine is cutting about 3,000 jobs from its global workforce as the automaker tries to cut costs as part of a restructuring effort under CEO Jim Farley.

Ford began notifying workers of the cuts on Monday, a company spokeswoman confirmed. The cuts are for 2,000 salaried positions and 1,000 agency jobs in the U.S., Canada and India, Farley and Ford Chairman Bill Ford said in a message to employees obtained by CNBC.

“Building that future will require changing and reshaping almost every aspect of how we’ve operated for more than a century. That will require focus, clarity and speed. And as we’ve discussed in recent months, that will mean reallocating resources and addressing the cost structure that traditional and unrivaled compared to new competitors,” the message reads.

Ford’s cost-cutting measures are the latest in efforts by companies to cut costs and reduce staffing amid fears of a possible recession or softening economy, with inflation hovering near 40-year highs.

The cuts, reported Monday by Automotive News, come less than a month after Farley told analysts that “we have too many people in certain places, there’s no doubt about that.”

The cuts come at Ford, which split into two units earlier this year to separate its electric and internal combustion engine businesses.

“There are opportunities to be more efficient and effective in all the business units and all the functions that support them,” Ford spokesman TR Reid told CNBC.

Ford has approximately 31,000 salaried employees in North America. As of the end of last year, Ford had 186,769 employees worldwide, of which 90,873, or 48.7%, were located in the United States.

Under Farley, who became CEO in October 2020, Ford is undergoing a major transformation of the company called Ford+, which includes plans to cut structural costs by $3 billion by 2026 while investing billions to expand its electric and commercial vehicle businesses.

“We’re working differently than before, looking at each team’s shift-based job applications related to our Ford+ plan. We’re eliminating jobs, as well as reorganizing and streamlining functions across the company,” the message to employees said.

Ford shares fell about 5% to $15.10 a share in afternoon trading on Monday. In 2022, shares are down about 27%.