Ford to reduce headcount in the US

The automaker’s gas, electric vehicle and software units will be impacted in this round


In an attempt to simplify its operations, Ford Motor is planning to cut jobs in the US. The layoffs will impact its salaried employees across various departments such as Ford’s gas, electric vehicle and software units.

The decision is reportedly  a part of the company’s intentions to cut down its expenses by as much as $3 billion within its conventional vehicle division, as announced in March 2022. After the announcement, Ford had communicated its plans to eliminate 3,000 positions including both permanent and contract roles. The layoffs were primarily focused on North America and India.

Recently, the company implemented layoffs within its engineering department in both the US and Canada, in the last week of June 2023. The move was a part of the firm’s strategic restructuring, aimed at achieving substantial cost reductions.

In the round of layoffs three of its business divisions were impacted: Ford Blue, encompassing its conventional internal combustion engine activities; Model e, which centres on electric vehicles; and Ford Pro, dedicated to fleet services.

The company’s global workforce decreased by approximately 10,000 individuals, as indicated in a public filing. Currently, the company’s employee count stands at 173,000.

Rising prices and robust interest in new automobiles have enabled car manufacturers to navigate certain inflation-related challenges, despite the obstacle posed by increased raw material expenses.

Automakers have been actively managing expenses within their electric vehicle divisions, which are known to be cost-intensive.

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