Over the next few days, thousands of Ford Motor Co. workers will be laid off, most of them in Michigan, as the company cuts costs and continues to reorganize and transform its business model.
In a memo sent Monday to about 31,000 Ford employees in North America, Executive Chairman Bill Ford and CEO Jim Farley explained that to “address all aspects of cost – from materials to those related to quality “, Ford will reduce its salaried workforce by 2,000 and temporary employees by 1,000 in the United States, Canada and India.
The majority of the job cuts will be in the United States, Ford spokesman Mark Truby told the Free Press, adding, “The majority of our employee base is in Michigan, so a percentage major job cuts are happening in Michigan.”
Ford has restructured its operations over the past two years, including splitting into divisions that focus on electric vehicles, internal combustion vehicles and commercial sales. It is part of the Ford+ plan.
The jobs that were cut are not in any specific part of the business, Truby said. Ford chose which jobs it would cut, “based on a holistic view of business needs.”
But Truby said the move was unrelated to fears of a recession and did not affect Ford’s June announcement that it would invest $2 billion in Michigan to create 3,200 union jobs, including nearly 2,000 jobs at three assembly plants to ramp up production of the all-electric F-150 Lightning pickup.
“So net-net, we’re adding more jobs in Michigan,” Truby said. “It’s a rebalance because the jobs we talked about were hourly employees. The jobs we’re talking about today are white collar. On an absolute basis, we’re still adding Michigan jobs if you look at both commitments.”
“A difficult and emotional time”
In the memo, Ford and Farley explained that Ford had reviewed each team’s “changing statement of work related to our Ford+ plan” and that the automaker was eliminating work, reorganizing and simplifying functions across the organization. the company. Ford officials will provide employees with more details on all of this later this week, the memo says.
“None of this changes the fact that this is a difficult and emotional time,” Ford and Farley wrote. “The people leaving the company this week are friends and colleagues and we want to thank them for all they have brought to Ford.”
Truby said Ford is working closely with the Michigan Economic Development Corporation to help those whose jobs are being cut find other work, noting that people are hiring now.
In fact, there’s a free job fair Tuesday at the Novi Emagine Theater from 8:30 a.m. to noon for those laid off from several companies in Detroit, including Ford, Rivian and Rocket Mortgage. There will be seven companies at the event, including Brose, Harley Davidson and Lordstown Motor, who are hiring and those companies will bring their recruiting teams, said Matthew Karrandja, who organized the show and is vice president of sales for the engineering recruitment company. LER TechForce.
Nor are the job cuts “a reaction to fears of a recession or worries about the economy,” Truby said. “It’s really about positioning the business for success, to deliver on our plan and reduce our costs.”
Cost reduction and reorganization
Ford has been working on its Ford+ Plan for several years. In March, the automaker announced a radical plan of division the company into divisions: Ford Pro to focus on its commercial business, Ford Blue, which will focus on the traditional internal combustion engine, and Ford Model e, which will develop battery electric vehicles and connectivity.
The idea is to help the 119-year-old automaker be more competitive against Tesla, the industry’s biggest electric vehicle competitor, as well as Crosstown rival General Motors, which plans to offer a zero range. emission by 2035.
Truby said Ford will invest $50 billion in the development of electric and connected vehicles over the next few years. But he didn’t know the exact savings Ford will realize with these recent job cuts.
“What we’ve said in the past is that we want to reduce our overall structural costs by $3 billion over time, over the next few years,” Truby said. “It’s not just the number of people, it’s the overall costs.”