Automaker Ford is preparing to lay off a quarter of its staff in the coming weeks, Bloomberg sources say. This measure will allow the company to increase profits to finance the promotion of its products in the electric vehicle market. The interlocutors of the agency note that the reduction will affect approximately 8 thousand employees.
In particular, employees of the newly created division of Ford Blue, which specializes in the production of cars with internal combustion engines, will fall under the reduction. This plan has not yet been approved, probably, its details will change.
The move is part of Ford CEO Jim Farley's global plan to cut $3 billion in spending by 2026. In March, he restructured the concern, dividing the production of cars into two parts. On his initiative, the Model e and Ford Blue divisions were created. The first focused on the manufacture of electric cars, and the second - on traditional cars with gasoline engines.
The cuts will apply to employees of Ford, who occupy various positions in the company. Layoffs are likely to take place in stages, they will begin in the summer. There are currently 31,000 employees employed at Ford's US facilities.
The automaker declined to comment on possible cuts. Ford said the company is focusing on a reorganization to capitalize on growth in electric vehicle sales. As part of this plan, the concern intends to reduce costs to ensure efficiency and full competitiveness, said Mark Truby, director of communications for Ford.
Downsizing is a key decision to increase profitability, Farley says. In February, the head of Ford admitted that the company has "too many people."
During 2022, Ford's stock has fallen 39%, the lowest in the auto industry, despite supply chain problems and inflation sweeping the market.
In March, Ford increased spending on electric vehicles to $50 billion, aiming to produce 2 million electric vehicles annually by 2026. Ford sold more than 27,000 electric vehicles in the US last year. In June, sales of Ford electric cars grew by 76.6% compared to the same period last year. The catalyst for this was the release of an electric version of the F-150 pickup truck.
Ford announced in March that it would launch seven new electric car models in Europe by 2024. The company plans to sell 600,000 electric vehicles on the European market by 2026.
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