The automaker, Ford Motors has confirmed that it is cutting about 3,000 jobs from its global workforce which was being speculated for a long time.
The company plans to cut 3,000 jobs across the U.S., Canada, and India, it said in a letter to employees on Monday. The company describes the reductions as part of a “reshaping” to get more competitive in the electric vehicle (EV) market.
The company said in a statement that those affected include 2,000 salaried and 1,000 agency positions. A spokesperson also informed that the cuts affect about 6% of salaried workers in the U.S. and Canada.
The email, signed by Executive Chairman Bill Ford and Chief Executive Jim Farley, said Ford is changing the way it operates and redeploying resources as it embraces new technologies that were not previously core to its operations, such as developing advanced software for its vehicles.
Earlier, Reports from July indicated that Ford was planning to lay off nearly 8,000 workers and Ford Blue would be affected.
Farley and Executive Chairman Bill Ford said in the letter that staying competitive and adapting for the future means “redeploying resources and addressing our cost structure, which is uncompetitive versus traditional and new competitors.”
The executives specifically pointed to connected vehicles and EVs as business areas where the company has “an opportunity to lead.”
The memo sent to staff from Ford and Farley stated:
Ford Team,
As you know, we are in the midst of a significant transformation of our company. Our industry and the business environment in which we operate are changing with breathtaking speed.
We have an opportunity to lead this exciting new era of connected and electric vehicles; create the most growth and value for Ford and our stakeholders since we scaled the Model T; and continue to make a positive difference in our customers’ lives and on society at large.
Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century. 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.
We committed to sharing information as decisions are made along the way. As we tackle all aspects of costs – from materials to those related to quality – we are informing some Ford teammates this week in the U.S., Canada and at FBS in India, that their positions are being eliminated. Overall, we are reducing our salaried workforce by about 2,000, as well as reducing agency personnel by about 1,000. These actions follow significant restructuring in Ford operations outside of North America over the past couple of years.
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. You will hear more specifics from the leaders of your area of the business later this week.
None of this changes the fact that this is a difficult and emotional time. The people leaving the company this week are friends and coworkers and we want to thank them for all they have contributed to Ford. We have a duty to care for and support those affected – and we will live up to this duty – providing not only benefits but significant help to find new career opportunities.
Thank you for all you do for Ford. Please continue to support each other, including colleagues who are leaving the company, as we build a strong and sustainable future.
Bill and Jim
