Ford Motor said on Monday it is cutting 3,000 jobs this week in a move to boost profits as it seeks to fund the $50bn it plans to spend on electric vehicles. The cuts will come primarily in the US, while some positions also are being eliminated in Canada and India, a company spokesperson said.
The total includes 2,000 salaried workers and 1,000 contract personnel. Most are coming from Ford’s operations that build traditional internal combustion engine vehicles, which CEO Jim Farley has said he wants to make the “the profit and cash engine for the entire enterprise.” Ford plans to build 2-million electric vehicles a year by the end of 2026, up from less than 64,000 last year, as it seeks to catch EV leader Tesla.
To finance its ambitions, Farley has said he wants to make more money on traditional gasoline-fuelled vehicles like the Bronco sport utility vehicle. He has repeatedly said the company has too many workers. “Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century,” Farley and executive chair Bill Ford wrote in a memo to employees on Monday.
“This is a difficult and emotional time. The people leaving the company this week are friends and coworkers and we want to thank them for all they have contributed.” A spokesperson didn’t rule out additional job cuts. Bloomberg previously reported Ford is considering eliminating as many as 8,000 jobs. Ford shares fell as much as 6.1% and were down 4.7% to $15.13 in the afternoon in New York as investors digested the job cut news and a separate $1.7bn verdict against the automaker on August 19. Ford said it is appealing. Bloomberg News.