Ford laying off 3,000 employees to cut costs, pay for EV transition
Reductions come as automaker is looking to lead a new era of connected, electric vehicles
Ford is laying off approximately 2,000 salaried employees and about 1,000 agency personnel as it looks to lead a new era of connected and electric vehicles.
"Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century," Ford Executive Chairman Bill Ford and CEO Jim Farley said in a letter to employees on Monday. "It requires focus, clarity and speed. And, as we have discussed in recent months, it means redeploying resources and addressing our cost structure, which is uncompetitive versus traditional and new competitors."
The automaker will inform affected employees in the U.S., Canada and at Ford Business Solutions in India this week. The company will provide benefits and "significant help" to find new career opportunities.
The move comes after media reports began surfacing in July that Ford could cut up to 8,000 jobs as part of its electric vehicle production expansion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 12.88 | +0.74 | +6.10% |
FORD WILL APPEAL $1.7 BILLION VERDICT RESULTING FROM FATAL CRASH IN GEORGIA
Ford F-150 Lightning pickup trucks sit on the production line at the Ford Rouge Electric Vehicle Center on April 26, 2022 in Dearborn, Michigan. (Photo by Bill Pugliano/Getty Images)
As of the end of 2021, Ford reported a global workforce of approximately 183,000 people.
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In addition to Ford, Tesla laid off 200 workers and closed its San Mateo, California office in June. Electric vehicle startup Rivian has also slashed 6% of its workforce as part of "major" cost-cutting measures.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 142.05 | -5.00 | -3.40% |
| RIVN | RIVIAN AUTOMOTIVE INC. | 9.21 | +0.42 | +4.78% |
Other companies that have laid off employees or paused hiring include Meta Platforms, Twitter, Netflix, Spotify, Oracle and Walmart.