Ford (F) to Reduce Headcount in the United States and Canada
Ford Motor Company F prepares to trim its workforce as part of its restructuring process. The layoffs will mostly affect engineering jobs in the United States and Canada. This round of layoff is expected to affect all of Ford’s business units, including Ford Blue, Model e and Ford Pro.
A company spokesperson declined to disclose the number of employees that will be affected by the layoff. In a recent quarterly filing, the legendary automaker mentioned that for the full year 2023, it expects to incur a total cost of between $1.5 billion and $2 billion, “primarily attributable to employee separations and supplier settlements.” In 2021 and 2022, the total cost incurred for the same was $2 billion and $608 million, respectively.
In August 2022, the automaker laid off 3,000 employees in North America and in February 2023, it announced cutting off 3,800 jobs in Europe. In its first quarterly filing, the automaker suggested that it may take additional restructuring action to attain sustainable profitability.
When compared with its competitors, Ford has a nearly $7 billion cost disadvantage that it aims to address through improved efficiency and job cuts. The Ford+ plan plays a vital role in the company’s staffing arrangements.
In an interview, Jim Farley, CEO Ford, said that it takes the company 25% more engineers to perform the same work as its competitors and the company can’t afford to be 25% inefficient.
According to a public filing, last year, Ford’s worldwide employee count dropped by 10,000 to 173,000.
Per the company’s email, the affected employees will get severance pay, benefits and support to find new career opportunities.
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