(Reuters) - Ford Motor is preparing for a new round of layoffs for its salaried workers in the United States, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The company in March last year announced plans to reduce structural costs of up to $3 billion at its gas-powered vehicle unit. In August, Ford said it would cut a total of 3,000 salaried and contract jobs, mostly in North America and India.
According to the WSJ report, the new round of layoffs is expected to affect employees at the Detroit automaker's gas, electric-vehicle and software divisions, but the number of cuts could not be learned.
Ford did not immediately respond to a Reuters request for comment.
The automaker's latest effort to streamline its operations comes after peers Stellantis NV and General Motors said they were offering employee buyouts.
Price hikes and strong demand for new vehicles have helped automakers counter some inflationary headwinds, though higher costs of raw material remain a challenge.
Automakers have also been trying to control costs at their expensive-to-run electric vehicle businesses, a focus area for the industry as environmental-friendly vehicles drift into the mainstream.
(Reporting by Nathan Gomes in Bengaluru; Editing by Maju Samuel and Devika Syamnath)
Ford to announce another round of layoffs, hitting salaried workers: report
Olafimihan Oshin
Thu, June 22, 2023
Ford Motor Co. is preparing to conduct another round of layoffs within the coming weeks.
Sources told the Wall Street Journal Thursday that the round of layoffs is expected to hit salaried workers in the U.S.
The cuts are expected to affect those who work in the company’s electric vehicle (EV) and software division as well as employees who work in Ford’s gas-engine side of the business.
In a statement, a Ford spokesperson told the Journal the recent moves are “part of the ongoing management of our business includes aligning our global staffing to meet future business plans, as well as staying cost competitive as our industry evolves.”
This round of layoffs follows one that happened last August that cut jobs for 3,000 white-collar and contract employees. The company also announced earlier this year that it was starting to cut 3,800 jobs in Europe, according to the Journal.
“We’ve consistently said that we’ll align our staffing around the skills and expertise needed to deliver on the Ford+ growth plan and provide customers with leading products and services,” a spokesperson for Ford told The Hill.
Ford joins competitors like General Motors and Jeep parent company Stellantis, which also announced layoffs in their workforce earlier this year.
The move comes as the U.S-based automaker is shifting its focus to EV products, as it had committed to spending $50 billion globally through 2026 to go forward with its new approach.
The automaker also plans to restructure operations internally to separate its gas-engine business from that focused on electric vehicles and software, the Journal reported.
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