Report: Ford Allegedly Planning More Layoffs

Matt Posky
by Matt Posky

report ford allegedly planning more layoffs

Ford has been restructuring for years and is reportedly planning additional layoffs. Staff from multiple business units, including its combustion-focused Ford Blue division and the Model e electric vehicle unit, are supposed to be getting bad news in the coming weeks. But the number of people getting laid off isn’t supposed to match what we’ve seen before. 

According to The Wall Street Journal, the brunt of the cuts will target salaried U.S. employees. Ford itself said it has nothing to say on the matter, adding that the company aligns its staffing around the skills and expertise needed to deliver on its growth plan.

The company has previously said it wants to slash $3 billion in annual expenses by reducing complexity and dealing with high warranty costs. CEO Jim Farley has also suggested trimming unnecessary portions of Blue Oval’s gasoline engine operations. Provided he doesn’t carve out any of the profitable bits, it could be a sound strategy. But the guy also seems a little preoccupied with the EV side of the business.

Some are concerned that Ford is betting too heavily on electrification. While this could be true from an investment perspective, the company is well aware that the brunt of its present-day sales stems from combustion vehicles. It has likewise stressed the importance of its commercial vehicles and recently updated Ford Pro to encourage fleet sales and customer retention. 

From WSJ:

The number of people Ford plans to lay off in this latest round couldn’t be learned. The cuts are expected to affect employees on Ford’s gas-engine side of the business, as well as its electric-vehicle and software division, the people said.
A Ford spokesman said the company has nothing to announce.
“As we have said, part of the ongoing management of our business includes aligning our global staffing to meet future business plans, as well as staying cost competitive as our industry evolves,” he added, in a statement.
Ford Chief Executive Jim Farley has said the automaker has more work to do than its competitors to get costs in line as it spends billions of dollars to transition its lineup to electric vehicles.

The company took a pretty big hit in 2022, reporting a $2 billion net loss. While these are tough times for numerous automakers, Ford’s operational costs seem much higher than its competitors. Executives have suggested the company spends billions more than necessary to address supply chain management and warranty expenses. 

Though it’s hardly alone in stressing over finances. Stellantis and General Motors have likewise been offering employees buyouts this year — with both hoping to address mounting operating costs. 

To help cope with its own overhead, Ford laid off roughly 3,000 employees in 2022 and started 2023 by announcing it would need to reduce its European workforce by roughly 3,800 heads. The automaker has also split itself into different divisions focused on traditional combustion engines and all-new electric models. However, the latter unit is expected to lose several billion dollars this year. 

[Image: Ford Motor Co.]

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13 of 60 comments
  • Ravenuer Ravenuer on Jun 24, 2023

    Ah yes, all the International Corporate Experts posting on here. I'm sure GM, Ford etc are all getting ready to beg you to come lead them.

    • See 5 previous
    • EBFlex EBFlex on Jun 27, 2023

      “Oh so you know what a source is. So did you get one for your allegation, which was noted and reported?”

      No idea what you are whining about.

  • Lou_BC Lou_BC on Jun 26, 2023

    ALLEGEDLY: "Reminder, Teslas have very poor build quality and are severely overpriced"

    • See 4 previous
    • Lou_BC Lou_BC on Jun 27, 2023

      "I do"..... Allegedly......

  • Dusterdude The "fire them all" is looking a little less unreasonable the longer the union sticks to the totally ridiculous demands ( or maybe the members should fire theit leadership ! )
  • Thehyundaigarage Yes, Canadian market vehicles have had immobilizers mandated by transport Canada since around 2001.In the US market, some key start Toyotas and Nissans still don’t have immobilizers. The US doesn’t mandate immobilizers or daytime running lights, but they mandate TPMS, yet canada mandates both, but couldn’t care less about TPMS. You’d think we’d have universal standards in North America.
  • Alan I think this vehicle is aimed more at the dedicated offroad traveller. It costs around the same a 300 Series, so its quite an investment. It would be a waste to own as a daily driver, unless you want to be seen in a 'wank' vehicle like many Wrangler and Can Hardly Davidson types.The diesel would be the choice for off roading as its quite torquey down low and would return far superior mileage than a petrol vehicle.I would think this is more reliable than the Land Rovers, BMW make good engines.
  • Lorenzo I'll go with Stellantis. Last into the folly, first to bail out. Their European business won't fly with the German market being squeezed on electricity. Anybody can see the loss of Russian natural gas and closing their nuclear plants means high cost electricity. They're now buying electrons from French nuclear plants, as are the British after shutting down their coal industry. As for the American market, the American grid isn't in great shape either, but the US has shale oil and natural gas. Stellantis has profits from ICE Ram trucks and Jeeps, and they won't give that up.
  • Inside Looking Out Chinese will take over EV market and Tesla will become the richest and largest car company in the world. Forget about Japanese.