Home Brand Story Ford Motor cut 3,000 jobs in the United States, cutting annual cost by $3 billion

Ford Motor cut 3,000 jobs in the United States, cutting annual cost by $3 billion

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Ford Motor cut 3,000 jobs in the United States, cutting annual cost by $3 billion

The matter recently broke the news to the “Wall Street Journal” that Ford Motor is preparing for a new round of layoffs of its US employees.

▲ Picture source Pexels

In March last year, Ford Motor announced a restructuring plan to split the fuel vehicle and electric vehicle businesses. Ford CEO Jim Farley said at the time that the company planned to cut annual costs by US$3 billion by 2026 (currently about RMB 21.57 billion), so as to achieve a pre-tax profit margin of 10%.

In August last year, Ford confirmed that it would cut 3,000 jobs in the United States, Canada and India to further cut labor costs. In January this year, Ford announced that due to the increasingly fierce competition in the electric vehicle industry, it will lay off about 3,800 employees in Europe in the next three years, most of which will be located in the United Kingdom and Germany.

People familiar with the matter said that the new round of layoffs at Ford is expected to involve employees in the fuel vehicle, electric vehicle and software departments, but the specific number of layoffs is not yet clear.

Ford Motor did not immediately respond to media requests for comment, but foreign media analysis pointed out that due to the high R&D costs of the electric vehicle business, many traditional automakers have felt the pressure of operating costs. Both General Motors and European auto giant Strandis have announced layoff plans to streamline operations and reduce costs.