Ford confirms massive layoffs to take place this week, affecting all three major business departments

Ford to lay off employees this week, impacting all major departments

【PhoneAuto News】Recently, PhoneAuto noticed that, according to CNBC, Ford Motor Company has confirmed that they will be laying off employees this week. It is reported that this layoff will mainly affect their engineering positions in the United States and Canada. It is expected that this layoff will affect all three of Ford’s business sectors: the traditional internal combustion engine business, Ford Blue, the electric vehicle unit, Model E, and the fleet service business, Ford Pro. It is reported that under the leadership of CEO Jim Farley, Ford has been restructuring its business under the “Ford+” plan for many years.

In March 2022, Ford officially announced a new restructuring plan, which plans to split its business between fuel and electric vehicles. Ford’s CEO, Jim Farley, has stated that Ford plans to reduce annual costs to $3 billion (approximately RMB 21.7 billion) by 2026 in order to achieve a pre-tax profit margin of 10%.

Of course, this week’s layoffs are not Ford’s first recent layoffs. Previously, in August 2022, Ford had already laid off over 3,000 employees in the United States, Canada, and India. In January 2023, Ford also announced that due to intense industry and market competition, they will be laying off around 3,800 employees in Europe over the next three years, mainly involving companies in the United Kingdom and Germany.

Prior to this, Ford’s executive chairman, Bill Ford, admitted in an interview with relevant media that the United States is not yet ready to compete with China in the production of electric vehicles. He also raised awareness that China’s electric vehicle industry is developing very rapidly and requires preparation.

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