With the focus shifting to electric vehicles (EV), Ford plans to reduce headcount in the engine business. The US car manufacturer wishes to invest and concentrate more on EVs amidst stiff competition from the likes of Tesla. Also, the American economy is experiencing a slump, which has pushed the Company to aim for a leaner structure.
A recent report in Bloomberg said that Jim Farley, chief executive, Ford, was ready to cut about 8,000 jobs, so that finances could be diverted towards EV manufacturing. The employees at Ford Blue, which produces gasoline-powered vehicles, are expected to be impacted the most.
When reports of Ford’s intentions to lay off emerged, Farley sent the employees a video message via e-mail, wherein he acknowledged the rumours pertaining to downsizing and that it was bound to create anxiety amongst the workforce. He, however, is said to have requested employees to focus on their work and explained that Ford needed to bring down costs in order to remain in the race.
He conveyed how important it was to drive transformation and significant change so that the Company could grow in the area of all-electric vehicles.
The Company had indicated that a smaller team is more agile, and hence, ensures speedy decision making.
Ford has been redoing its cost structure so that the Company becomes more lean and efficient enough to compete with the best in the EV space.
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