As part of the Company’s efforts to address costs and redeploy resources, Ford is set to reduce its team size by about 3,000. The cuts, which will affect about 2,000 full-time employees on the rolls, and about 1,000 contractual workers, will happen across India, Canada and the US, as reported by The Wall Street Journal.
The exact number of people that will be affected at Ford Blue — its internal combustion engine (ICE) vehicles unit — and Ford Model E — its electric vehicles (EVs) unit — is yet to be officially revealed.
The employees have been informed that these changes are in keeping with the rapid pace at which the business environment and the operation of the industry are changing.
These job cuts are part of Ford’s way of tackling material costs as well as costs related to quality.
The memo sent out to the employees by Bill Ford, chairman, Ford and Jim Farley, CEO, Ford admits that it is not easy to cut jobs and acknowledges with gratitude the contribution made by the employees to the Company’s growth.
Ford and Farley promise that the Company will fulfil its duty towards the impacted workers by providing them relevant benefits and also help them find new jobs.
The chairman and CEO explain to the employees in the memo that the present cost structure of Ford is rather uncompetitive, and therefore, it is time to address the same and redeploy resources.