Ford Announces 3K Layoffs

Company trims white-collar jobs as part of transition to electric vehicles
By Newser Editors and Wire Services
Posted Aug 22, 2022 12:07 PM CDT
Ford Announces 3K Layoffs
A Ford logo on the tailgate of a 2012 F350 Super Duty pick-up truck is seen under a Ford dealership sign in Salem, N.H   (AP Photo/Charles Krupa, File)

Ford Motor Co. is cutting about 3,000 white-collar jobs as it attempts to lower costs and make the transition from internal combustion to electric vehicles, per the AP. Leaders of the automaker made the announcement Monday in a companywide email, saying that 2,000 full-time salaried workers would be let go along with another 1,000 contract workers. The cuts represent about 6% of the 31,000 full-time salaried work force in the US and Canada. Ford's 56,000 union factory workers are not affected.

Executive Chairman Bill Ford and CEO Jim Farley said in the email that Ford will provide benefits and significant help for the workers to find new jobs. They also wrote that Ford has a chance to lead in the new era of connected and electric vehicles. “Building on this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century,” the email said. “It means redeploying resources and addressing our cost structure, which is uncompetitive versus traditional and new companies.” A spokesman said the cuts were made across all areas of the company, including cuts in the large work force of internal combustion engineers.

Farley has said repeatedly that the company has too many people and needs to trim costs so it can move faster as it transitions to electric vehicles. On the company's earnings conference call in July, Farley said the company is too complex and its costs aren’t competitive. It also has too many employees in some areas. “We have skills that don’t work anymore,” he said. “We have jobs that need to change.”

(More Ford Motor Co. stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.