According to a news source, Ford Motor Company is preparing to lay off up to 8,000 workers in the coming weeks to help fund its drive into electric vehicles.
The news emerged during a live broadcast on Bloomberg Television. According to Bloomberg, citing unidentified individuals familiar with the proposal, the layoffs will be concentrated in the newly formed Ford Blue segment, which manufactures gasoline-powered vehicles, as well as "other salaried activities around the firm."
According to reports, the proposal has not yet been completed but it is part of the company's strategy to eliminate $3 billion in operational expenses from its gas-powered business operations while increasing earnings.
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These layoffs would be made in the Ford Blue division, which is in charge of the company's internal combustion engine cars, as well as in salaried roles. According to the sources, the cuts will be phased in beginning this summer.
Ford currently employs around 31,000 paid employees in the United States, where the majority of the layoffs are predicted to occur. Moving forward with innovation does not always come without cost and the layoffs are intended to help Ford transition away from ICE production and redirect funding to EV development.
Ford CEO Jim Farley has stated that he intends to cut $3 billion in expenditures by 2026 and to make Ford Blue the "profit and cash engine for the entire organization." Farley reorganized the carmaker in March, creating two businesses: "Model e" to develop EVs and "Ford Blue" to focus on internal combustion engine cars like the iconic F-150 truck, Mustang, and Bronco SUV.
If the uproar over the F-150 Lightning is any indication of the appetite for EVs wearing the blue oval, it's no surprise that the American automaker is doing everything it can to boost EV production and sell as many electrified vehicles as possible as it works toward becoming an entirely electric brand someday.
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This change, however, is not without difficult decisions. As the company transitions to a zero-emissions age, some of its manufacturing units, as well as the people who make them hum, will become outdated. Ford today provided a bittersweet hint of the EV revolution, as the firm is apparently preparing for major employment layoffs in order to focus even more on electrified innovation.
Perhaps this is a good time to plug my new EV Jobs board at www.EVJobs.io which Ford and other companies driving into the EV space will find to be a valuable resource for recruiting top talent for jobs in electrification.