Ford will cut 8,000 jobs to fund the electric vehicle initiative
CEO Jim Farley wants to cut costs by $3 billion by 2026
Ford Motor Co. is getting ready to axe up to 8,000 posiions in the upcoming weeks as it looks to increase earnings to support its drive into the electric vehicle (EV) industry.
The insiders who requested anonymity to reveal private business deliberations, stated that the job cuts will affect salaried operations across the entire firm, as well as the newly established Ford Blue unit, which is in charge of developing internal combustion engine vehicles. Details of the strategy have not yet been completed, so they may change.
The action would be a significant development in CEO Jim Farley’s strategy to reduce costs by $3 billion by 2026. Ford Blue will become the profit and cash engine for the entire enterprise. Ford’s car making division was cleaved in two by Farley in March when he established the Model e segment to expand EV production and Ford Blue to concentrate on conventional gas burners like the Bronco sport utility vehicle.
The job cuts are anticipated this summer and will affect employees across the board. Most layoffs will happen in the US where 31,000 Ford workers are currently employed.
After selling just 27,140 battery-electric vehicles in the US last year, Farley increased funding on EVs to $50 billion in March and announced a target to construct 2 million such vehicles yearly by 2026. As it introduced the popular new electric F-150 lighting truck, Ford’s EV sales last month increased 76.6% from a year earlier.
