The Ford Motor Company (F) plans to cut up to 8,000 jobs as it frees up funds to invest in
electric vehicles.
Most of the headcount reduction will come from the recently created “Ford Blue” division that is
responsible for producing internal combustion engine, or gasoline powered vehicles, as well as
from salaried positions at the Detroit automaker, the company said.
The job cuts are part of Ford’s efforts to reduce costs by a total of $3 billion U.S. by 2026. In
March of this year, Ford restructured into two divisions, the “Model e” unit that is focused on
electric vehicles and “Ford Blue” that concentrates on gas powered cars, trucks, and SUVs.
The job cuts are also expected to hit Ford’s salaried and executive ranks and are expected to
start in the next few weeks. Ford employs 31,000 salaried employees in the U.S., which is
where most the job cuts are anticipated.
In March, Ford increased its spending on electric vehicles to $50 billion U.S. and set a plan to
build two million EVs annually by 2026, after selling only 27,140 last year.
However, in June of this year, Ford’s electric vehicle sales rose 77% from a year earlier as it
rolled out the electric version of the popular F-150 pick-up truck.
Ford’s stock has fallen 42% year-to-date to trade at $12.73 U.S. per share.