CrimsonPhantom
CUSA Curator
Posts: 42,151
Joined: Mar 2013
Reputation: 2404
I Root For: NM State
Location:
|
Ford announces 3,000 job cuts to prioritize electric vehicle lineup – 'cost reduction
Quote:On Monday, Ford Motor Co. sent a companywide email announcing that 2,000 salary and 1,000 agency positions would be cut, reported Automotive News.
The letter, written by CEO Jim Farley and Executive Chair Bill Ford, stated that employees working in the U.S., Canada, and India will find out if their positions have been terminated this week.
The email read, "We are eliminating work, as well as reorganizing and simplifying functions throughout the business."
Previously, Bloomberg predicted that Ford would eliminate approximately 8,000 jobs, citing Farley's plan to cut $3 billion in costs by 2026.
In July, Ford locked down an agreement with a Chinese battery supplier, Contemporary Amperex Technology, for its EV lineup. The partnership would allow the automaker to produce 2 million EVs annually by 2026.
"Cost reduction will happen in our ICE business," Farley said regarding Ford's internal combustion engine division.
Earlier this year, Ford split its company into two divisions – Ford Blue, dedicated to internal combustion engines, and Ford Model e, devoted to the electric vehicles fleet.
Ford continues to restructure by removing resources from its Ford Blue division and reallocating them toward its growing EV unit.
Earlier this year, the company announced it would invest $50 billion into its Model e division to catch up to Tesla. To compete with Tesla's success, Ford said it would need to reduce distribution costs by $2,000 per vehicle.
Monday's joint email confirmed the shift in priorities. The letter read, "It requires focus, clarity and speed. And, as we have discussed in recent months, it means redeploying resources and addressing our cost structure, which is uncompetitive versus traditional and new competitors."
Farley and executive chair Bill Ford have been direct with employees about the need for the company to cut costs. Raw materials, batteries, and shipping expenses have increased significantly. According to Reuters, Ford has been hit with $3 billion in additional costs due to inflation.
On Ford's second-quarter earnings call last month, Farley said, "In the past, often indiscriminately, we'd take the cost out. That's not what's happening at Ford now. This is a different kind of change, where we're reshaping the company."
Link
|
|
08-22-2022 06:43 PM |
|
Bear Catlett
Hall of Famer
Posts: 13,057
Joined: Jan 2020
Reputation: 1557
I Root For: UC
Location:
|
RE: Ford announces 3,000 job cuts to prioritize electric vehicle lineup – 'cost reduction
What, they can just get jobs as solar panel installers. Right Joe?
|
|
08-22-2022 08:32 PM |
|
shere khan
Southerner
Posts: 60,964
Joined: Mar 2004
Reputation: 7632
I Root For: Tulane
Location: Teh transfer portal
|
RE: Ford announces 3,000 job cuts to prioritize electric vehicle lineup – 'cost reduction
(This post was last modified: 08-22-2022 08:43 PM by shere khan.)
|
|
08-22-2022 08:43 PM |
|
umbluegray
Legend
Posts: 42,191
Joined: Nov 2003
Reputation: 2027
I Root For: The Tigers!
Location: Memphis
|
RE: Ford announces 3,000 job cuts to prioritize electric vehicle lineup – 'cost reduction
I wonder if they'll be given first choice on the jobs at Ford's Blue Oval City plant in TN when it opens in 2025.
|
|
08-23-2022 12:30 PM |
|
CardinalJim
Welcome to The New Age
Posts: 16,613
Joined: Apr 2004
Reputation: 3022
I Root For: Louisville
Location: Staffordsville, KY
|
RE: Ford announces 3,000 job cuts to prioritize electric vehicle lineup – 'cost reduction
There are two Ford assembly plants here in Louisville and I drive a Chevy Silverado.
|
|
08-23-2022 01:04 PM |
|
Claw
Hall of Famer
Posts: 24,996
Joined: Feb 2004
Reputation: 1233
I Root For: Memphis
Location: Orangeville HELP!
|
RE: Ford announces 3,000 job cuts to prioritize electric vehicle lineup – 'cost reduction
What happens when no one buys these EVs?
|
|
08-23-2022 02:40 PM |
|
Eagleaidaholic
Hall of Famer
Posts: 10,160
Joined: Jun 2010
Reputation: 790
I Root For: Southern Miss
Location:
|
RE: Ford announces 3,000 job cuts to prioritize electric vehicle lineup – 'cost reduction
(08-23-2022 02:40 PM)Claw Wrote: What happens when no one buys these EVs?
They will get bailed out.....again. Next quarter is going to be layoff season. It is starting early.
|
|
08-23-2022 02:51 PM |
|
umbluegray
Legend
Posts: 42,191
Joined: Nov 2003
Reputation: 2027
I Root For: The Tigers!
Location: Memphis
|
RE: Ford announces 3,000 job cuts to prioritize electric vehicle lineup – 'cost reduction
(08-23-2022 02:40 PM)Claw Wrote: What happens when no one buys these EVs?
I'm thinking we're eventually not going to have a choice.
|
|
08-23-2022 04:19 PM |
|
Claw
Hall of Famer
Posts: 24,996
Joined: Feb 2004
Reputation: 1233
I Root For: Memphis
Location: Orangeville HELP!
|
RE: Ford announces 3,000 job cuts to prioritize electric vehicle lineup – 'cost reduction
(08-23-2022 04:19 PM)umbluegray Wrote: (08-23-2022 02:40 PM)Claw Wrote: What happens when no one buys these EVs?
I'm thinking we're eventually not going to have a choice.
I'm thinking some states will step up and protect that choice.
|
|
08-23-2022 04:38 PM |
|
U_of_Elvis
All American
Posts: 4,784
Joined: Dec 2005
Reputation: 379
I Root For:
Location:
|
RE: Ford announces 3,000 job cuts to prioritize electric vehicle lineup – 'cost reduction
(08-23-2022 12:30 PM)umbluegray Wrote: I wonder if they'll be given first choice on the jobs at Ford's Blue Oval City plant in TN when it opens in 2025.
These are non union salaried jobs, so most likely office jobs.
|
|
08-23-2022 05:14 PM |
|