Overview
Ford is Likely to Dump 8,000 Employees because this year in March, Ford divided its operations into two separate divisions. The Ford Model E is responsible for EV development, and Ford Blue for the ICE models. As the Pony automaker is slowly leaning toward electric mobility, it makes sense for the former for a higher priority. And a new report indicates the automaker could dump as many as 8,000 jobs from the Ford Blue division in an attempt to boost profits. But it would be good for both the company and its employees if the automaker gives them a backup the workers for the jobs they lost. (Source: Motor1)
What’s New?
Automotive News, got this information from the “people who are familiar with the plan”. The source told the publication, that the manufacturer wants to decrease a significant portion of its employed workforce. But this has not been finalized yet, although the move is a part of a larger strategy for funding Ford’s league into EV territory. But after reaching out to Ford for more information, the automaker didn’t comment on potential job cuts.
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Ford company representative also said, “To deliver our Ford+ transformation and lead an exciting and disruptive new era of electric and connected vehicles. We’re reshaping our work and modernizing our organization across all of the automotive business units and the entire company. We’ve laid out clear targets for our cost structure so that we’re lean and fully competitive with the best in the industry”. Automotive News reports that dumps are highly expected to occur mainly in the United States. This is where the company employs about approximately 31,000 salaried workers. The dumps may come in phases, with the process likely to start later this summer. This move might be a part of Ford’s CEO Jim Farley’s strategy to save up to $3 billion in costs by 2026.
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Extras
Unfortunately, the automaker’s plant in Saarlouis, Germany, is facing a similar situation. Earlier this year, it was clear that Ford will invest tremendously in its Valencia, Spain factory. Where the next-gen EVs will be produced, leaving Saarlouis expecting “significant” job cuts. As of now, the German plant employs 4,600 people, but (the harsh part is) “the reality of the industry is that the production of EVs will require fewer people,” as Ford of Europe’s head honcho Stuart Rowley admitted.