If there is news that we never like to see in the automotive industry, regardless of the manufacturer, it is that announcing job cuts. Unfortunately, that’s what’s happening at Ford as the company plans to cut 3,000 jobs worldwide this week.
The whole thing was detailed in an email sent to employees yesterday, a letter obtained by Automotive News magazine.
The cuts will affect personnel in the United States, Canada and India. In all, 2,000 direct employees will be affected, the other 1,000 positions being related to jobs carried out within agencies related to Ford, specified the chief executive of Ford, Jim Farley, as well as the president director, Bill Ford, via email. A company spokesperson confirmed to Automotive News the veracity of this email.
“Building the future requires changing and reshaping virtually every aspect of how we have operated for over a century. It requires focus, clarity and speed. And, as we’ve discussed over the past few months, that means redeploying resources and tackling our cost structure, which is uncompetitive with traditional and new competitors,” say Jim Farley and Bill Ford.
The cuts will affect a host of roles and job types, including purchasing, and will affect both the Ford Blue and Model e divisions.
See the vehicles for sale available near you
The company told employees that in addition to cutting jobs, it would reorganize and simplify functions within its organization.
“None of this changes the fact that this is a difficult and emotional time. The people leaving the company this week are friends and colleagues and we want to thank them for all they have brought to Ford. We have a duty to support those affected, and we will deliver by providing not only benefits, but also meaningful assistance in finding new career opportunities,” the letter reads.
The Bloomberg site reported in July that Ford anticipated eliminating some 8,000 jobs in the near future. The decision announced today is therefore not a surprise.
Last month, Jim Farley reiterated that Ford was overstaffed on the company’s second-quarter earnings conference call.
We hope that all those affected can find another job quickly.
Ford shares fell 4.9% to US$15.10 in midday trading on Monday, as most major stock indexes were down.