F - Ford to Terminate 3000 Jobs Amid Cost-Cutting Efforts

Ford Motor (NYSE: F) is set to lay off 3,000 jobs globally, as it strives to cut costs amid restructuring efforts under CEO Jim Farley. The bulk of terminated employees will be from Michigan. Approximately 2,000 salaried positions and 1,000 agency workers will be cut within the U.S., Canada, and India.

“Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century,” Ford and Farley said in the memo, according to CNBC. “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.”

The layoffs are happening throughout Ford’s businesses, which were previously split into two units earlier in the year to divide its electric and internal combustion engine businesses.

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

Farley, who became CEO in October 2020, is leading the automaker’s massive transformation of the company called Ford+ that includes plans to reduce USD3 Billion in structural costs by 2026. Additionally, the movement includes the investment of billions to expand its electric and commercial vehicle businesses.

“We worked differently than in the past, examining each team’s shifting work statement connected to our Ford+ plan. We are eliminating work, as well as reorganizing and simplifying functions throughout the business,” read the message to employees.

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