The hits keep on coming for GM’s Cruise. After high-profile crashes and being forced to temporarily shutter operations in California, the autonomous vehicle unit announced yesterday that it would lay off a quarter of its workforce in a move that sees around 900 people losing their jobs.
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.
After a long period of hiring and widespread labor shortages, some companies are looking to cut back on staff to prepare for uncertain economic times ahead. Earlier this month, we learned that thousands of GM employees took the company’s offer for a buyout, which helped it avoid mass layoffs. Now it’s Stellantis’ turn, as the automaker is offering money to lure around 3,500 hourly workers out of their jobs.
Though it has earned near-universal praise for its debut sedan, the Air, Lucid is having trouble finding traction with the ultra-expensive EV. Earlier this week, the automaker announced a restructuring effort that involves almost a fifth of its workforce. After a disappointing 2023 production forecast, Lucid is looking to cut costs as uncertain economic times are ahead.
General Motors is planning to spend an estimated $1.5 billion to buy out a meaningful portion of its salaried workforce in the hopes that the decision will help save the company $2 billion over the next couple of years. While it seems like a very expensive way to save money, CEO Mary Barra clearly feels as though now is the time to strike.
Ford Motor Co. reportedly has plans to cut 3,800 administrative and product development positions in Europe over the next three years – representing a little more than 10 percent of its regional workforce. Germany and the United Kingdom are presumed to be the zones taking the biggest hits, with the automaker suggesting that it needs to streamline the workforce as part of its transition toward all-electric vehicles.
Ford is reportedly preparing to lay off a minimum of 1,000 German employees as it prepares to manufacture two battery-electric models developed under Volkswagen’s MEB platform. The partnership is old news, as is Ford wanting to pivot toward all-electric vehicles. However, everyone seems surprised that the decision would be accompanied by job cuts – despite countless reports having predicted that the global push toward EVs would mean far-fewer automotive jobs in the years to come.
A report, citing unnamed sources, has claimed Ford is planning to eliminate up to 8,000 jobs in North America to free up capital for its ongoing transition to all-electric vehicles. Cuts are expected to begin later this summer and will allegedly target salaried employees working within the “Ford Blue” unit the automaker created to specialize in gasoline-driven vehicles.
This follows earlier statements made by CEO Jim Farley, who warned in February that the company had too many people on its payroll and specifically lacked the expertise required to reposition itself as an automaker specializing in EVs. Though this isn’t really unique to the Blue Oval, as the entire industry knew that manufacturing electric cars would require far less manpower.
Unvaccinated workers from General Motors’ CAMI Assembly Plant have been removed from the facility and forced into unpaid leave. The automaker had a deadline set for December 12th to have all employees vaccinated, with Unifor previously having urged the company to postpone the date. The Western world has seen a surge of citizens protesting vaccine mandates this year, with Canadian unions conducting more than a few of their own. Though several organizers have said they’re operating independently due to a shared belief that Unifor was offering insufficient support to members and was effectively siding with automakers.
Jeep is laying off 150 workers that would have otherwise been employed at its Belvidere Assembly Plant, which actually produces the Jeep Cherokee instead of the long defunct, full-size Plymouth. Based on the timing, this decision appears to have something to do with the FCA-PSA Group merger that formed Stellantis.
Barely a full day after news broke that Ford was on the cusp of announcing layoffs, Ford announced those layoffs. On Wednesday, the automaker informed employees that it needs to eliminate 1,400 salaried jobs as part of its $11-billion restructuring program. The good news is that these cuts will be handled through retirement buyouts that won’t leave the departing workforce empty handed. The automaker’s internal memo also stated that the buyouts would be voluntary.
The Blue Oval previously said it expects a full-year loss in 2020 thanks to the pandemic, with a pre-tax profit of anywhere between $500 million and $1.5 billion in the third quarter.
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