Home » Business News • Employment News » Ford will cut 8,000 jobs to boost its electric vehicle growth

Ford will cut 8,000 jobs to boost its electric vehicle growth

By Nithya Bose in Business News, posted July 21, 2022

Ford plans to lay off up to 8,000 workers in the coming weeks in order to reduce costs and sharpen its focus on electric vehicles.

The redundancies will mostly affect Ford's salaried employees, as well as the Ford Blue unit established in March to handle the company's internal combustion engine operations.

The plans may change and the final details have not yet been decided.

However, it's likely they will be implemented in stages and are expected to begin this summer.

A Ford spokesperson said the firm does not comment on speculations, but it has planned a conference call for Thursday, July 21 to inform investors of its next plans.

The automaker intends to produce 600,000 electric vehicles per year by 2023, and over two million by the end of 2026.

Ford spokesman T.R. Reid said: "To deliver our Ford+ transformation and lead this exciting and disruptive new era of electric and connected vehicles, we remain focused on reshaping our work and modernizing our organization across all automotive business units and across the company.”

"As part of this, we have laid out clear targets to lower our cost structure to ensure we are lean and fully competitive with the best in the industry."

Looking for a new job? Find the WhatJobs Career Advice Center here

Ford increased its EV expenditure through 2026 from $30 billion to $50 billion in March.

With the Ford Model e and Ford Blue, the company divided its activities into distinct units focusing on EVs and gasoline-powered vehicles, respectively.

The Dearborn, Michigan-based corporation also stated at the time that its EV business would not be profitable until 2025 when the manufacture of next-generation vehicles begins.

Source: Reuters

Follow us on YouTube, Twitter, LinkedIn, and Facebook.