Report: Ford Allegedly Planning More Layoffs
Ford has been restructuring for years and is reportedly planning additional layoffs. Staff from multiple business units, including its combustion-focused Ford Blue division and the Model e electric vehicle unit, are supposed to be getting bad news in the coming weeks. But the number of people getting laid off isn’t supposed to match what we’ve seen before.
According to The Wall Street Journal, the brunt of the cuts will target salaried U.S. employees. Ford itself said it has nothing to say on the matter, adding that the company aligns its staffing around the skills and expertise needed to deliver on its growth plan.
The company has previously said it wants to slash $3 billion in annual expenses by reducing complexity and dealing with high warranty costs. CEO Jim Farley has also suggested trimming unnecessary portions of Blue Oval’s gasoline engine operations. Provided he doesn’t carve out any of the profitable bits, it could be a sound strategy. But the guy also seems a little preoccupied with the EV side of the business.
Some are concerned that Ford is betting too heavily on electrification. While this could be true from an investment perspective, the company is well aware that the brunt of its present-day sales stems from combustion vehicles. It has likewise stressed the importance of its commercial vehicles and recently updated Ford Pro to encourage fleet sales and customer retention.
From WSJ:
The number of people Ford plans to lay off in this latest round couldn’t be learned. The cuts are expected to affect employees on Ford’s gas-engine side of the business, as well as its electric-vehicle and software division, the people said.
A Ford spokesman said the company has nothing to announce.
“As we have said, part of the ongoing management of our business includes aligning our global staffing to meet future business plans, as well as staying cost competitive as our industry evolves,” he added, in a statement.
Ford Chief Executive Jim Farley has said the automaker has more work to do than its competitors to get costs in line as it spends billions of dollars to transition its lineup to electric vehicles.
The company took a pretty big hit in 2022, reporting a $2 billion net loss. While these are tough times for numerous automakers, Ford’s operational costs seem much higher than its competitors. Executives have suggested the company spends billions more than necessary to address supply chain management and warranty expenses.
Though it’s hardly alone in stressing over finances. Stellantis and General Motors have likewise been offering employees buyouts this year — with both hoping to address mounting operating costs.
To help cope with its own overhead, Ford laid off roughly 3,000 employees in 2022 and started 2023 by announcing it would need to reduce its European workforce by roughly 3,800 heads. The automaker has also split itself into different divisions focused on traditional combustion engines and all-new electric models. However, the latter unit is expected to lose several billion dollars this year.
[Image: Ford Motor Co.]
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A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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Ah yes, all the International Corporate Experts posting on here. I'm sure GM, Ford etc are all getting ready to beg you to come lead them.
ALLEGEDLY: "Reminder, Teslas have very poor build quality and are severely overpriced"