Wednesday, December 6, 2023
HomeBusinessFord cuts 580 U.S. salaried, company employees because it restructures for EVs

Ford cuts 580 U.S. salaried, company employees because it restructures for EVs

Ford CEO Jim Farley on the firm’s Dearborn, Michigan, plant the place it is constructing the electrical F-150 Lightning on April 26, 2022.

CNBC | Michael Wayland

DETROIT – Ford Motor is chopping 580 U.S. salaried staff and company employees as a part of its ongoing Ford+ turnaround plan, the corporate confirmed Wednesday night time.

The cuts embrace roughly 350 salaried and 230 company positions, based on an emailed assertion. The reductions occurred largely in engineering, because the Detroit automaker pivots from automobiles with conventional inside combustion engines to electric cars and trucks that may require completely different ability units.

“We proceed to align staffing across the crucial abilities wanted to ship our merchandise, companies, and the Ford+ plan,” the corporate stated. “As a part of the continued administration of our enterprise, we are going to proceed to align our staffing to fulfill our future enterprise wants and plans.”

The automaker stated impacted staff and the companies for the non-Ford staff had been notified Wednesday – the identical day the automaker reported a net loss of $3.1 billion in the first quarter, largely due the loss in worth of a 12% stake in EV start-up Rivian Automotive.

The cuts, which will likely be accomplished by the tip of the week, come lower than two months after Ford stated it will reorganize operations to separate its electrical and inside combustion engine companies into completely different models inside the automaker.

Ford stated eligible staff will obtain advantages continuation and severance equal to as much as 9 months of pay based mostly on service and “profession transition companies.” A spokeswoman declined to estimate how a lot the packages will value the automaker.

The worker cuts, which had been first reported by the Detroit Free Press, are solely about 1% of the corporate’s roughly 31,000 U.S. salaried workforce. As of the tip of final 12 months, Ford had 186,769 staff globally, with 90,873, or 48.7%, hourly and salaried employees situated within the U.S.

Source link



Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Recent Comments