As the American automaker moves forward with its transition to electric vehicles, Ford Motors confirmed that it will be cutting approximately 3,000 jobs.
In an internal email, the company’s leaders announced that 1,000 contract workers and approximately 2,000 salaried full-time employees will be let go. The cuts will primarily affect white-collar workers in India and North America. The 56,000 union workers at Ford won’t be hurt by the layoffs.
Governments around the world are making efforts to lessen the impact of climate change by reducing the number of gasoline-powered automobiles.
Ford has stated that it will invest as much as $20 billion in the next five to ten years to challenge Tesla’s market dominance. By 2030, Ford intends to produce half of Tesla’s global production in electric vehicles.
In an email, chief executive Jim Farley and executive chairman Bill Ford stated that the company has the potential to lead the electric vehicle industry. Building on this future necessitates altering and reshaping virtually every aspect of our operations, as stated in the email.
The email states that it entails redeploying resources, addressing their uncompetitive cost structure in comparison to traditional and new businesses, eliminating work, and reorganizing and streamlining all business functions.
The affected employees will receive severance pay and assistance in finding new employment. Jim Farley has previously stated that Ford must streamline processes in order to accelerate its electric transition and that the company’s global workforce of 182,000 is excessive.
According to Ford spokesperson TR Reid, additional job cuts are still possible. TR Reid added that because of the industry’s rapid pace, they will effectively manage the business to accommodate these rapidly shifting priorities.
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