Ford To Slash 1,000 Jobs To Offset Rising Costs Of Electric Vehicle Production

According to a report from the Wall Street Journal, Ford is planning to reduce its workforce by at least 1,000 positions in North America in order to counterbalance the increasing expenses linked to the production of electric vehicles. The Wall Street Journal stated that Ford has begun informing salaried employees in North America about the forthcoming job cuts, a fact that was later confirmed by a company representative the next day.

Ford has announced that it anticipates a loss of around $3 billion in operating profit for its electric vehicle business in the current year. However, company executives remain optimistic that profits generated from their gas-engine vehicles will sustain the company until the electric vehicle program becomes profitable.

In the meantime, Ford is prioritizing a reduction in its operating costs, which currently amount to $8 billion, a high figure compared to other automakers. As part of this cost-cutting strategy, the company has recently confirmed that approximately 1,000 salaried employees based in North America will be laid off.

The job cuts will primarily impact employees in the electric vehicle and software programming departments, although some staff in the gas-powered and commercial vehicle sectors will also be affected.

Last summer, Ford had already laid off around 3,000 employees in the United States, and earlier this year, even larger layoffs were announced in Europe.

Apart from implementing workforce reductions, Ford has made a request for government funding to expand its battery manufacturing activities.

Recently, the Department of Energy revealed its plan to provide Ford with a substantial loan of $9.2 million as part of a collaborative effort to bolster the production of electric vehicle batteries in three U.S. factories. This loan represents the largest amount ever granted by the program office.

The Biden Administration has been actively advocating for the conversion of the federal government’s vehicle fleet from gasoline-powered to electric by the year 2035. This initiative includes military vehicles, with a focus on non-combat roles as the initial target.




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