Ford Layoffs 3,000 Of Its Employees To Cut EV Production Fees

Ford layoffs three thousand employees (photo: doc. Unsplash)

JAKARTA - Transformation to electric vehicles has become the main focus for several car companies. Ford, the Dearborn-based automaker, confirmed its plans to eliminate 3,000 white-necked workers, especially in the US, Canada, and India.

Ford started sending emails to its employees, and the emails were shared with Automotive News and The Wall Street Journal, based on what was in the email, these layoffs were carried out as an effort to cut costs due to the transition to electric vehicles.

The 3,000-employee cut is a nearly 1 percent reduction from Ford's global workforce of around 183,000 people. The layoff will be effective from September 1, a company spokesman said.

Affected employees come from various divisions such as the Ford Blue ICE division, the Model e EV and Ford Credit units. Furthermore, Ford mentioned that, about 2,000 of the targeted cuts were paid jobs, and the remaining 1,000 employees worked in contract positions with outside agents.

"Building this future requires change and re-establishment of almost all aspects of the way we operated over a century," the Ford Motor Company wrote in its email.

An internal email signed by Executive Chair Bill Ford and CEO Jim Farley, said Ford changed the way it operates.

"As we have discussed in recent months, it means respreading resources and overcoming our uncompetitive cost structure versus traditional and new competitors," the company added further.