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Ford, Rivian plan for job cuts amid economic uncertainty

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Yahoo Finance's Pras Subramanian joins the Live show to discuss Ford and Rivian announcing job cuts amid economic uncertainty.

Video Transcript

AKIKO FUJITA: Well, car makers are looking to job cuts as economic worries mount, with Ford saying layoffs will be more strategic than before. Let's bring in Pras Subramanian, Yahoo Finance's autos reporter. It feels like every day, we hear reports of this, but what exactly are we hearing from Ford?

PRAS SUBRAMANIAN: We had heard reports about them cutting 8,000 jobs as they realign the business towards more EVs, less ICE business. CEO Jim Farley was asked about that last night. He said, yes, we have too many jobs, so basically hinting that that's going to happen. But it sounds like they want to maintain sort of the electric business and target more the ICE business.

Look, they had a great quarter. They beat on the top line, beat on the bottom line, reiterated their forecast. They secured materials for all their EV production through 2025. So they're in a really good shape here. It's just a matter of just reformatting the business.

BRIAN CHEUNG: They're not the only automaker cutting jobs. Rivian, apparently, also doing the same.

PRAS SUBRAMANIAN: Yeah, so they finally confirmed they're going to cut around 6% of jobs. They have 14,000 employees, so around 840 jobs. They're saying it's not going to impact manufacturing. It's going to be stuff like marketing and other types of support types of activity.

So it's not good from a headline point of view, but probably better for the company to get leaner and execute their vision of making their 25,000 vehicles by this year. They've only made about 7,000, 8,000 since they started making them last year. So they have a long way to go. And it's probably a way for them to actually focus more on that production as they ramp up.

BRIAN CHEUNG: Yeah, no ICE business, obviously, for Rivian. Internal combustion engine, by the way. That's what the abbreviation is for.

PRAS SUBRAMANIAN: That's why you're here.

BRIAN CHEUNG: Exactly. Yahoo Finance's Pras Subramanian, thanks so much for the breakdown there.