Ford to Cut 3,000 Jobs in India, North America

Ford announced that it is cutting 3,000 salaried and contract jobs from its global workforce to reduce expenses as it transitions towards software-driven electric vehicles. The cuts mostly affect the US, Canada and India, and will affect 2,000 salaried openings and 1,000 agency jobs.

“We absolutely have too many people in certain places, no doubt about it,” said Jim Farley, Chief Executive Officer, Ford Motor, as reported by CNBC.

The company employs about 90,873 workers in the US and a total of 186,769 employees globally. The cuts are part of the company’s Ford+, which aims to cut US$3 billion in structural costs by 2026 while also investing in hybrid and electric vehicles. This announcement resulted in a 5 percent decrease in the company’s stock today.

“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,” said Farley.

Ford is investing in electrification, claiming in this year’s Human Rights Report that it aims to make EVs more affordable while also targeting low-income communities, as reported by MBN.

“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,” said Farley and Bill Ford, Chairman, Ford, in a joint email to employees, according to Reuters.

Collaboration between the private and public industries is critical for an efficient EV transformation. On Aug. 3, 2022, Ford announced a US$50 billion investment in its assembly plant in Cuautitlan, State of Mexico, providing the resources for tripling its capacity from 70,000 to 210,000 units by the end of 2023, as reported by MBN. The plant focuses on the Mustang Mach-E, assembling 156,076 units in the first half of 2022, of which 147,195 will be exported to foreign markets.